The document examines the relationship between temperature and electricity usage in Oakdale. It provides temperature and kilowatt usage data for 8 observations. A regression analysis found a strong positive correlation (r=0.9809) between the variables. This correlation was found to be statistically significant at the 1% level, indicating the relationship is unlikely due to chance.

1. The city of Oakdale wishes to see if there is a relationshipbetween the temperature and the
amount of electricity used (inkilowatts). Test the significance of the correlation coefficient at? =
0.01 using Table I.
Temp., x 73 78 85 98 93 81 76 105
Kilowatts, y 680 760 910 1510 1170 837 600 1800
Solution
The regression equation is y = 36.655x - 2123.6 and r = 0.9809. With 8 observations, the 1%
level is .83. Because r is greater than this, the correlation is significant.