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E Quest North Dakota Electric Company estimates its demand trend line (in millio

ID: 391394 • Letter: E

Question

E Quest North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D 77.0 + 0.452. where Q refers to the sequential quarter number and Q = 1 for winter of Year 1 In addition, the multiplicative seasonal factors are as follows: QuarterFactor (Index) Winter Spring Summer Fall 1.25 1.50 0.53 In year 26 (quarters 101-104), the energy use for each of the quarters beginning with winter is (round your response to one decimal place): Energy Use Quarter Winter Spring Summer Fall ter your answer in each of the answer boxes

Explanation / Answer

In year 26, the energy use for each quarter is computed as under:

Winter = (77+0.45*101)*0.72 = 88.2

Spring = (77+0.45*102)*1.25 = 153.6

Summer = (77+0.45*103)*1.50 = 185.0

Fall = (77+0.45*104)*0.53 = 65.6