An Air Conditioning and Heating Repair Firm Conducted a Study

question 9

Essay

An air conditioning and heating repair firm conducted a study to determine if the average outside temperature, thickness of the insulation, and age of the heating equipment could be used to predict the electric bill for a home during the winter months in Houston, Texas.The resulting regression equation was:
Y = 256.89 - 1.45X1 - 11.26X2 + 6.10X3, where Y = monthly cost, X1 = average temperature, X2 = insulation thickness, and X3 = age of heating equipment
(a)If December has an average temperature of 45 degrees and the heater is 2 years old with insulation that is 6 inches thick, what is the forecasted monthly electric bill?
(b)If January has an average temperature of 40 degrees and the heating equipment is 12 years old with insulation that is 2 inches thick, what is the forecasted monthly electric bill?

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Definitions:

Positioning Activities

Marketing efforts aimed at shaping the perception of a product or brand in the target market's mind, relative to the competition.

Target Market

A specific group of potential consumers at whom a company aims its products and services.

Executive Summary

A concise overview at the beginning of a report, business plan, or document that summarizes the main points for readers, offering a quick insight into the document's purpose and content.

Achievable

A term describing a goal or target that is realistic and within reach, encouraging practical planning and effort to accomplish.