The Data Below Are the Average Monthly Temperatures, In ${ } ^ { \circ } \mathrm { F } ,$

question 86

Essay

The data below are the average monthly temperatures, in ${ } ^ { \circ } \mathrm { F } ,$ and the monthly natural gas consumption, in ccf,
for a household in northwestern Pennsylvania. Find the standard error of estimate, s $\mathrm { Se }$ given that
ŷ = -4.310x + 296.352. $$\begin{array} { l | c c c c c c c c c } \text { Temperature } & 47 & 35 & 21 & 27 & 39 & 48 & 61 & 65 & 70 \\\hline \text { Consumption } & 34 & 169 & 248 & 134 & 137 & 100 & 19 & 34 & 12\end{array}$$

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Definitions:

Scale Reduction

The process of downsizing the scope or size of operations, often in response to operational inefficiencies or declining profits.

Long-Run Average Total Cost

The average cost per unit of output incurred when all factors of production, including capital, are variable, considered over a sufficient period for all adjustments to be made.

Decreasing Returns to Scale

Decreasing returns to scale occur when increasing the inputs used in production results in a less than proportional increase in output.

Total Cost

The aggregate of expenses involved in creating goods or delivering services, covering both stable and changeable costs.