JX A B C Electricity cost ($) Average outdoor temperature (OF) Tons of product QUESTION 3 24100 26 The facility manager at a sports textile company wants to build a regression model to forecast 23700 32 73 monthly electricity cost. Two main variables are thought to determine electricity cost (in $): 26800 46 90 average outdoor temperature (in F) and tons of product produced. A portion of the past 27400 61 69 year's monthly data is shown in the following table. 30200 66 75 1500 73 80 Electricity cost ($) Average outdoor temperature (OF) Tons of product 30100 81 82 24100 26 80 29500 85 80 23700 32 73 10 2680 76 78 26800 46 90 27500 61 ... 12 28900 51 30600 71 86 13 26000 39 14 6600 72 *Please refer to the full data set provided for this question. (File name: Electricity cost) 15 2660 41 16 24000 84 83 a. State the simple linear regression model where electricity cost is treated as the dependent 17 27300 56 84 variable while: 18 29300 64 84 i. the average outdoor temperature (in F) is the sole independent variable. (1 Mark) 19 28500 85 69 ii. the tons of product produced is the sole independent variable. (1 Mark) 20 2900 66 72 30200 61 80 b. Based on the ordinary least square estimate, form the simple linear regression equation by 21 calculating the estimated slope (b1) and the intercept (bo) when: 22 3080 51 88 i. the average outdoor temperature (in F) is the sole independent variable. (4 Marks) 23 9000 57 70 ii. the tons of product produced is the sole independent variable. (4 Marks) 24 25100 54 69 25 0800 74 86 c. State the appropriate multiple linear regression model. (1 Mark) 26 7800 68 82 27 31800 50 87 d. Using any statistical software, determine the multiple linear regression equation for (c) and 28 860 46 75 show the output of the software. (3 Marks) 29 29600 29 30 27600 43 e. Based on the p-value produced in (d), determine whether average outdoor temperature 31 7800 45 and tons of product produced are significant in explaining electricity cost. Assume that the 32 2460 37 significance level is set at 10%. (2 Marks) 33 24200 48 34 7800 38 78 f. Based on your answer in (e), explain the relationship between the dependent variable and 35 25100 26 84 the significant independent variable(s). (1 mark) 36 24400 60 90 37 29900 36 74 g. What is the predicted electricity cost in a month during which the average outdoor 38 24500 69 83 temperature is 650 and 76 tons are produced? (2 Marks) 39 26900 87 40 27900 74 41 30600 71 86