You have been provided a data set showing monthly usage records for each customer of a utility for a one year period. You also have five years of utility financial records and records of total water production and sales for the utility.

a) What specific compilation of customer data would you require to evaluate a rate structure such as the one above? What statistics or measures would be of particular importance, and why?

b) What analyses would you undertake to incorporate or evaluate the five years of general information?

c) You are asked whether multifamily customers should be classified separately from commercial customers. What statistical methods and measures would you use to evaluate this when comparing the two classes?