Electric power consumption is measured in kilowatt-hours (kWh). The local utility company has an interrupt program, whereby commercial customers who participate receive favorable rates but must agree to cut back consumption if the utility requests them to do so. Timko Products cut back consumption at 12:00 noon Thursday. To assess the savings, the utility must estimate Timko’s usage without the interrupt. The period of interrupted service was from noon to 8:00 P.M. Data on electric consumption for the past 72 hours is available.

a. Is there a seasonal effect over the 24-hour period? Compute seasonal indexes for the six 4-hour periods.
b. Use trend adjusted for seasonal factors to estimate Timko’s normal usage over the period of interruptedservice.

Transcribed Image Text:

Wednesday 31,209 37,014 119,968 156,033 128,889 73,923 Time Period Monday 12-4 A.M. 4-8 A.M. 8-12 noorn 12-4 P.M. 4-8 P.M. 8-12 midnight Tuesday 19.281 33,195 99,516 123,666 111,717 48,112 Thursday 27,330 32,715 152,465 124,299 113,545 41,300