We suspect that the average monthly outside temperature affects electricity costs in a nonlinear way: during a very cold month electricity costs will be high, during a moderate month electricity costs will be low, and during a very hot month electricity costs will be high. If we are correct, what form will the model take? A) COST = constant + # (TEMPERATURE) - # (TEMPERATURE)² B) COST = constant - # (TEMPERATURE) + # (TEMPERATURE)² C) COST = constant + # (TEMPERATURE) + # (TEMPERATURE)² D) COST = constant - # (TEMPERATURE) - # (TEMPERATURE)²

Question

Quizplus · Accepted Answer

The model should have a quadratic form with a negative coefficient for the linear term and a positive coefficient for the squared term to reflect the U-shaped relationship, where costs are high at both low and high temperatures.

We Suspect That the Average Monthly Outside Temperature Affects Electricity