Question

Assume you have your own electricity bills for the last three years and that you have lived in the same house.

• Discuss how you could use bivariate regression to predict your upcoming electricity bills.

• Once you determine the statistically significant correlation and regression prediction, how much do you trust it?

• What would give you greater confidence to spend your savings on a vacation rather that keeping it in reserve for the electricity bill?

Answer 1

Bivariate relapse utilizes 2 factors one is autonomous (indicator) variable and other is dependent(response) variable.

To show this circumstance we can accept measure of bill as reliant variable since we need to foresee that and free factor as no of hours spend at home.(assuming you live alone). Why I have taken number of hours spent at home? See when you are not at home a few apparatuses would be working continually and they will expend practically same power lile cooler. Yet, when you are at home you may utilize TV , clothes washer , dishwashers and so forth. So it would be a decent decision to accept number of hours as free factor.

We can't place a lot of trust in our outcomes regardless of whether we get critical relationship. Why? since there are less number of perceptions. for instance expect you are on a profession break so you invested a lot of your energy at home so clearly you would get high costing bills so you may wind up overestimating the sum. So also on the off chance that you are out traveling because of work your month to month bills would cost less and you may wind up disparaging.

On the off chance that we can have more perceptions i.e rather than 3 months in the event that we can have 6 or a year power charge, at that point we can have more trust in our expectations and as needs be we can design our spending on excursions. Likewise having more information will empower us to have a gauge of regular vacillations so for instance we know when there isn't a lot of warmth utilization will be lower so we can design our get-aways around then.

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