The facility manager at a pharmaceutical company wants to build a regression model to forecast monthly electricity
Question:
The facility manager at a pharmaceutical company wants to build a regression model to forecast monthly electricity cost. Three main variables are thought to dictate electricity cost: (1) average outdoor temperature, (2) working days per month, and (3) tons of products produced.
a. Estimate the regression model.
b. At the 10% significance level, are the explanatory variables jointly significant? Show the relevant steps of the test.
c. Are the explanatory variables individually significant at the 10% significance level? Show the relevant steps of the test.
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a Cost 14039187 92783 Temp 446141 Work 27003 Tons b H 0 1 2 3 4 0 H A At least one j 0 The reported ...View the full answer
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