Question: Use the data found in the spreadsheet called problem #2 to estimate the following model. MCF is a measure of energy used in New Orleans, temperature is the average temperature in New Orleans on a given winter day and Weekend is a dummy variable that equals 1 if the day is a weekend and a zero otherwise. MCF is what New Orleans uses to heat their homes . So as temperature goes DOWN, MCF usage goes UP (in general).

$MC{{F}_{t}}={{\beta }_{0}}+{{\beta }_{1}}*Tem{{p}_{t}}+{{\beta }_{2}}*Weeken{{d}_{t}}+{{\beta }_{3}}*Temp_{t}^{2}+\varepsilon$

1. Interpret ${{\beta }_{2}}$
2. What is the marginal impact of temperature onto MCF if temperature drops from 40F ⁰ to 39F ⁰ ? It does not matter if it is a weekend or not. Weekends cancel out.

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