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Linear regression model

Montgomery, Peck, and Vining [2006] present data on the number of pounds of steam used per month at a plant. Steam usage is thought to be related to the average monthly ambient temperature. The past year"s usages and temperatures are shown in Table E3.2. 

a. Fit a simple linear regression model to the data.

b. Test for significance of regression.

c. Analyze the residuals from this model.

d. Plant management believes that an increase in average ambient temperature of one degree will increase average monthly steam consumption by 10,000 lb. Do the data support this statement?

e. Construct a 99% prediction interval on steam usage in a month with average ambient temperature of 58°F.

TABLE E3.2  Monthly Steam Usage and Average Ambient Temperature

Month

Temperature (°F)

Usage/1000

Month

Temperature (°F)

Usage/1000

January

21

185.79

July

68

621.55

February

24

214.47

August

74

675.06

March

32

288.03

September

62

562.03

April

47

424.84

October

50

452.93

May

50

454.68

November

41

369.95

June

59

539.03

December

30

273.98

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