I. Purchasing Electrical Power (Modeling)
In order to plan its purchases of electrical power from suppliers over the next 5 years, the PAC Electric Company needs to model its load data (demand for power by its customers) and use this model to predict future loads. The company pays for the electrical power each month on the basis of the peak load (demand) at any point during the month. The table gives, for the years 1998–2016, the load in megawatts (that is, in millions of watts) for the month when the maximum load occurred and the load in megawatts for the month when the minimum load occurred. The maximum loads occurred in summer, and the minimum loads occurred in spring or fall.
The company wishes to predict the average monthly load over the next 5 years so that it can plan its future monthly purchases. To assist the company, proceed as follows.
What factors in addition to the average monthly load should be considered when the company plans future purchases of power?
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