# You would like to know how much money a higher thermostat setting saves you during a Houston…

You would like to know how much money a higher thermostat setting saves you during a Houston summer. So for six years in a row you flip a coin to decide whether to set the thermostat to 72?F or 78?F for all of August, with the following bills:

72?: \$178, \$195, \$201

78?: \$180, \$153, \$164

a. Write down and estimate a simple linear regression model for predicting monthly bills, given your thermostat setting.

b. If you set your thermostat to 76?F next August, use your model to predict what your electric bill will be. Do you find this prediction plausible? Why or why not?

c. You decide that air conditioning is bad for you, so next August you set your thermostat to 86?F. Use your model to predict your electric bill. Do you find your prediction plausible? What practical aspects of the problem might lead you to doubt your prediction?

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