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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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