Question

(a) temperature and demand

Temperature 50 45 40 35 30 25 20 15 10 17895x 8.2561 3-0.0785 10

(b) (5 marks) Discuss the appropriateness of the model calculated in (a). Provide full reasoning in support of your conclusion.

(c) (4 marks) Assuming the model is appropriate for use as a linear regression (ignore any conclusion you have reached in part (b) above), what is the likely demand for electricity in Victoria if the temperature reaches 35o Celsius. Show all calculations, including any appropriate formula(e).

(d) (5 marks) To answer this part of the question you will need to do some research. Please remember the referencing requirements for academic submissions. In the preparation of linear regression models using the appropriate Excel analysis tool, a graph titled ‘Normal Probability Plot’ is provided. What does this plot purport to show and what does it mean in the context of this question?

Answer 1