Reference no: EM132168136

The Public Utilities Commission is interested, because of a rate-setting case, in the relationship between the recorded high temperature in downtown Los Angeles and the electrical peak load demand (in megawatts). A random sample of 12 days in July and August resulted in the following observation, followed by the regression output: Temp. 92 88 82 91 86 94 88 85 96 90 95 89 Load 215 223 217 241 189 223 194 223 238 251 243 219 R R Square Adj.RSqr StErr of Est df F p-value 0.506 0.256 0.182 16.913 10 3.445 0.093 Variable Coeff. Std.Err. t-value p-value Constant 21.25 108.804 0.195 0.849 Temp. 2.25 1.212 1.856 0.093

a) Is there significant evidence that this regression is useful? Why or why not?

b) What is the expected increase in peak load demand for a 3 degrees increase in the high temperature?