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Applying a Regression Analysis to Electricity Consumption

Consumption Temperature
126 30
132 25
114 29
87 42
67 48
50 61
39 69
45 78
39 72
43 62
61 45
92 36
123 27
121 33
138 28
99 39
64 47
52 63
49 69
41 73
44 70
53 64
59 53
118 27

The owner of a single-family home would like to develop a model to predict electricity consumption in his house, based on average atmospheric temperature in degrees Fahrenheit.
Monthly kilowatt usage and temperature data are available for a period of 24 months

1) Assume a linear relationship, use the least square method to find the regression coefficients bo and b1

2) Predict the mean kilowatt usage when the average temperature is 50 degrees Fahrenheit.

3) Compute the Durbin-Watson statistic. At the 0.05 significance level, is there evidence of autocorrelation among the residuals?

Solution Summary

This solution provides assistance finding the regression coefficients bo and b1, predicts the mean kilowatt usage, and computes the Durbin-Watson statistic.

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