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Office Building Temperatures

The owner of an office building studies heating cost versus daily high temperatures. He records the following data:

Temperature (deg C) @ Cost ($100)
-------------------------------

1 @ 9
4 @ 5
6 @ 3
10 @ 2

He proposes a regression equation to predict the cost of heating the building.

What is the predicted heating cost for a day with a high temperature of 8 degrees C and what is the correlation coefficient?

Solution Preview

The Regression equation to predict the cost of heating will be
<br>Y=aX+b
<br>where Y is the predicted cost
<br>X is the high temperature
<br>a is the coefficient of the first variable (temperature) and
<br>b is the intercept.
<br>Our given data ...

Solution Summary

The soltuion addresses the fact that the owner of an office building studies heating cost versus daily high temperatures and his data recording.

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