The value of attic insulation vs. heating oil usage

Case Study, Statistics

Project description

The Value of Attic Insulation vs. Heating Oil Usage

You have been assigned to help the Randolph Insulation Company of Mt. St. Warren Michigan with a statistical problem. The company has been working with the Mt. St. Warren Community College’s technical education staff. They have a joint project, “Save Oil– Insulate!” This is a project to show the benefits to the community of insulating the attics in the town. Your job is to help the company and the college prepare statistics that show the value of insulation.

Case Study Background

The insulation company has surveyed over 150 homes that heat with oil. They have asked for a number of homeowner volunteers to allow faculty and students from the college to come to their homes and to determine how much insulation they currently have in their attics.

The faculty and students measured 16 of the houses from the list of the volunteers, and selected four families as “typical” for the types of wood-framed houses in Mt. St. Warren. Here is information (Table 1) on those homes and a target temperature that is needed as part of your extra credit multiple regression.

Table 1. Volunteer Homes with Current Insulation and temperature

Mount St. Warren MI

Homes Current Insulationvalue in inches Target Temperature

Donny Rogers 6 32

Rose Glenn 11 38

The Roberts 18 24

The Corkers 20 12

The original set of data is found in the materials for this extra credit. The file titled Heating Oil 2014 is the data that you will need for your multiple regression. The amount of oil used is the dependent variable and the temperature and inches of insulation are the independent variables. After you have determined the coefficients for this set of data then you will apply those coefficients to the data found in Table 1 to forecast the amount of heating oil these four homes would use at the target temperature.

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Cost of a Gallon of Home Heating Oil

The current cost for a gallon of home heating oil is $4.12. Now that you know this and the amount of heating oil that these four families will use, complete Table 2 and include it along with your explanation of how you arrived at this decision in your mini homework report.

Table 2. Estimated Use of Heating Oil and Annual Cost

Mount St. Warren MI

Homes Estimated Amount of Heating Oil Annual Cost of Heating Oil

Donny Rogers $

Rose Glenn $

The Roberts $

The Corkers $

The Fine Print for this Case Study – Read this carefully and completely

Now that you have calculated the potential usage for heating fuel oil for these four families help the college faculty and students make their case about adding insulation to the attics around Mt. St. Warren. Base your case on the statistics that you found out. Why should the good people add insulation (What’s in it for them?)?Be specific in your answer.

Composition of your Mini Report – Be sure that each of these points is covered in your mini report

Your mini report should be between 5 and 7 pages long with New Times Roman,font 12 point with ¾ inch margins (but it can be longer as you so desire) covering the following:

1. A summary of what the case study is about, what you did to solve the problem, and what the results of the regression, estimated fuel usage, and expense – limited to 200 words.

2. The body of the report explain what you did, how you did it, and what you found out.

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3. Discuss the r-squared, standard error of the estimate, F-ratio and the t-test p-values. What do they tell you about this regression and what do they mean? Again be specific in reviewing these results.

4. Are the estimates of the use of fuel oil reasonable based on the statistics that you created? Why or why not? If not, then what additional information would you want to have? Be specific in this answer.

5. Table Two from above. What does this table show the reader?

6. What is your recommendation to company on how they can help their customers save money by insulating their attics? Be specific!!!!

7. A concluding statement summarizing the problem and the solution – limited to 75 words.

8. A citation of the case study and any additional research (which is encouraged) that you did.

9. Attach your Excel file to the report or as part of your attachment in Blackboard.

So that is your challenge, to keep your job you need to be accurate, so let’s be accurate in this case study calculations and report. Remember neatness counts so let’s make the report look professional.