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It’s good that you are working to figure this question out. Understanding this calculation is important, and you’ll see similar things like this on later exams.
Your calculation used total voltage for the circuit and total resistance. That will give you the heat generated by the entire circuit, not just the loose connection itself.
Rewatch the last video in Unit 3 on the similar scenario, if you haven’t already, and note that the paragraph under the video explains that we don’t recommend using Esquared/R for P for this scenario.
Let me know if there’s something in our video that you don’t understand and I’m happy to help you further.