Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year though less in the summer months and very little in August Everything else in the shop runs on electricity, and electricity use is fairly constant throughout the year.
For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity.
Average Temperature Utility Cost
January deg F $
February
March
April
May
June
July
August
September
October
November
December
Required:
Use the highlow method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of deg F; temperatures in February are expected to average deg FHorizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is
colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used
every month of the year though less in the summer months and very little in August Everything else in the shop runs on electricity,
and electricity use is fairly constant throughout the year.
For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and
electricity.
Required:
Use the highlow method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near
record average temperature of ; temperatures in February are expected to average