The amount of electricity supplied by a utility to residences in a community dur

Question

The amount of electricity supplied by a utility to residences in a community during the summer depends on the local weather as well as the habits of the people in the community. Complete parts (a) and (b).

(a) Would a normal model be reasonable to describe the amount of electricity used from one day to the next? Explain.

A. Yes, so long as the weather was inconsistent during the time period.

B. Yes, so long as the weather was fairly consistent during the time period.

C. No, the habits of the people in the community are not observable.

D. No, consistent weather during the time period would cause the data to be skewed.

(b) Would it be reasonable to treat a sequence of daily electricity consumption values as iid normal random variables? Explain.

A. No, weather is an independent process, and the amounts are not normally distributed.

B. Yes, weather is an independent process, and the amounts might be normally distributed.

C. Yes, weather and the habits of the people in the community are independent and might be normally distributed.

D. No, weather is a dependent process. The amounts might be normally distributed, but not independent.

Explanation / Answer

Would a normal model be reasonable to describe the amount of electricity used from one day to the next? Explain.

D. No, consistent weather during the time period would cause the data to be skewed.

(b) Would it be reasonable to treat a sequence of daily electricity consumption values as iid normal random variables? Explain.

A. No, weather is an independent process, and the amounts are not normally distributed.

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