Statistics Quest

Applied case · Energy and facilities · about 70 minutes

Energy use and the weather

A year of daily meter readings from an office tower: discover why a straight line says temperature barely matters, find the curve the residuals point to, add the working-week effect and check what the residuals still say.

The brief

The facilities team at Tower 7, Lotus Business Park (a fictional six-storey office building) must submit next year's electricity budget and decide whether to fund a chiller upgrade, which only pays off if cooling drives a large share of consumption. A consultant ran a quick correlation, found it weak, and concluded that “weather explains little of our energy use — the upgrade is a poor investment.”

The facilities manager is not convinced and asks you to re-analyse a full year of daily data (energy_use, synthetic, 2023): electricity used (kWh), mean outdoor temperature and whether the day is a working day (Sunday–Thursday).

Your job: check the data, test the consultant's conclusion, build a model that fits, and say what it implies — and what it cannot tell you — for the budget and the chiller decision.

The building and its readings are synthetic, generated for teaching.

Dataset

Office building daily energy use

365 rows · one row = one day · synthetic data

DateWeekdayWorking dayOutdoor temperature (°C)Energy use (kWh)
2023-01-01Sundaytrue9.42711.1
2023-01-02Mondaytrue12.32658.9
2023-01-03Tuesdaytrue13.32560.5
2023-01-04Wednesdaytrue10.22670.3
2023-01-05Thursdaytrue10.82549.4
2023-01-06Fridayfalse7.61320.4

Included with a Formula Quest membership

This case has 4 stages and 9 graded tasks, ending with a written report.

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