Quantitative Analysis - Dupree
Executive Summary
Dupree Fuels Company sells heating oil to residential customers. The company wants to guarantee to its customers that they will not run out of heating oil at any time during the winter months. Factors such as the energy efficiency of homes and the temperatures during winter months have been shown to be important factors related to the amount of heating oil that customers use. The company collected data from a sample of 40 residential customers regarding four variables, oil usage, degree days, a measure of the difference in temperature from 68 degrees Fahrenheit over the period since the last tank fill up, the number of people living in the home, and a home index that measures the energy efficiency of the homes. The results of the linear regression models that were tested showed that degree days and the home index were significant predictors of heating oil usage. Based on the results of the linear regression analysis, a forecast was created to predict the amount of heating oil customers would use based on an average home index.
Problem Description Dupree Fuels Company sells heating oil to residential customers. The company wants to guarantee to its customers that they will not run out of heating oil at any time during the winter months. The company has pledged to its customers that if they run out of heating oil during the winter months, they will receive 50 gallons of heating oil at no cost. The problem facing Dupree is how can it predict customer heating oil usage so that refills of heating oil can be delivered before customers actually run out of oil to heat their homes. In order for Dupree to be able to predict customer heating oil usage, it is important to understand some of the factors that affect heating usage during winter months. Not surprisingly, one of the main factors that affect the level of heating oil usage during the winter months is temperature. During periods of the winter in which temperatures become colder than
Dupree Fuels Company sells heating oil to residential customers. The company wants to guarantee to its customers that they will not run out of heating oil at any time during the winter months. Factors such as the energy efficiency of homes and the temperatures during winter months have been shown to be important factors related to the amount of heating oil that customers use. The company collected data from a sample of 40 residential customers regarding four variables, oil usage, degree days, a measure of the difference in temperature from 68 degrees Fahrenheit over the period since the last tank fill up, the number of people living in the home, and a home index that measures the energy efficiency of the homes. The results of the linear regression models that were tested showed that degree days and the home index were significant predictors of heating oil usage. Based on the results of the linear regression analysis, a forecast was created to predict the amount of heating oil customers would use based on an average home index.
Problem Description Dupree Fuels Company sells heating oil to residential customers. The company wants to guarantee to its customers that they will not run out of heating oil at any time during the winter months. The company has pledged to its customers that if they run out of heating oil during the winter months, they will receive 50 gallons of heating oil at no cost. The problem facing Dupree is how can it predict customer heating oil usage so that refills of heating oil can be delivered before customers actually run out of oil to heat their homes. In order for Dupree to be able to predict customer heating oil usage, it is important to understand some of the factors that affect heating usage during winter months. Not surprisingly, one of the main factors that affect the level of heating oil usage during the winter months is temperature. During periods of the winter in which temperatures become colder than
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