The number of tons of steam used per month by a chemical plant
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The number of tons of steam used per month by a chemical plant

6. The number of tons of steam used per month by a chemical plant is thought to be related to the average ambient temperature (in °F) for that month. The past years usage and temperature are shown in the following table:


Using Minitab, a regression procedure with usage (y-variable) on temperature (x-variable) was executed with the following results:


(a) Calculate a 99% confidence interval for β1 

(b) Find a 95% confidence interval for β0

(c) Provide a point estimate of the correlation between Temp and Usage.

Provide a point estimate of the mean and standard deviation of the error variable ε in the linear model

 y=β_0+β_1 x+ε

Hint
StatisticsStandard deviation : It is a statistic which measures the data set 's dispersion which is relative to its mean. It is calculated as the square root of variance by determining the each deviation of the data point that is relative to the mean. It basically calculates all the uncertainty as the risk, even if it is in the favor of the investor....

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