Utilities must forecast the demand for energy use far into the future because it takes decades...

Utilities must forecast the demand for energy use far into the future because it takes decades to plan and build new power plants. Ron Baker, who worked for New York State Electric and Gas (NYSEG), had the job of predicting the proportion of homes that would choose to use electricity to heat their homes. He was prepared to report a confidence interval for the true proportion, but after seeing his preliminary report, his management demanded a single number as his prediction. Help Ron explain to his management why a confidence interval for the desired proportion would be more useful for planning purposes. Explain how the precision of the interval and the confidence we can have in it are related to each other. Discuss the business consequences of an interval that is too narrow and the consequences of an interval with too low a confidence level

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