Reference no: EM13195559
A Los Angeles utility needs to decide whether to invest 5 billion dollars to build a new power plant in 1995. Its current plants produce a total of 5400 Megawatts (MW) of electricity. The actual peak electrical demand of the Los Angeles area since 1980 is shown below.
Actual Peak
Year Demand (MW)
1980 4,069
1981 4,364
1982 4,456
1983 4,445
1984 4,882
1985 4,713
1986 4,742
1987 4,922
1988 4,991
1989 4,774
1990 5,312
1991 5,100
a) What is the Linear Trend equation for this data?
b) Plot the straight line developed from the Linear Trend equation, and the actual Peak demand versus the time, with time being the independent variable.
c)What is the projected demand for 1995?
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: Plot the straight line developed from the Linear Trend equation, and the actual Peak demand versus the time, with time being the independent variable.
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