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Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in

Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity, and electricity use is fairly constant throughout the year.
For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity.
Average Temperature Utility Cost
January 31\deg F $ 764
February 41633
March 43547
April 44414
May 46279
June 50237
July 53224
August 60214
September 50309
October 40534
November 30754
December 10884
Required:
Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of 5\deg F; temperatures in February are expected to average 40\deg F.Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is
colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used
every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity,
and electricity use is fairly constant throughout the year.
For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and
electricity.
Required:
Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near
record average temperature of 5F; temperatures in February are expected to average 40F.
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