Cost Estimation, High-Low Method Antelope Park Amoco (APA) in Antelope Park, Alaska, has noticed that utility bills are substantially higher the colder the average monthly temperature is. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity, and electricity use is fairly constant throughout the year. For a year, APA has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity.
Average Temperature Utility Cost
January 31 Degrees F $760
February 41 629
March 43 543
April 44 410
May 46 275
June 50 233
July 53 220
August 60 210
September 50 305
October 40 530
November 30 750
December 20 870
Required
Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of 10?F; temperatures in February are expected to average40?F.