Question: Examine the relationship between the average utility bills for homes of a particular size (Y) and the average monthly temperature (X). The data in the file -- use File2-3.Xls. Include the average monthly bill and temperature for each month of the past year.

a. Create a scatter plot to discern the relationship between the average utility bills (Y) and the average monthly temperature (X).

b. Use the given data to estimate a simple liner regression model. Report your estimated equation and provide interpretation.

c. How well does the estimated regression model fit the given data? How might we do a better job of explaining the variation of the average utility bills for homes of a certain size?

d. What will be the average amount of mistake/error made if one were to use these regression results to predict/forecast average utility bills for homes [of a particular size]?