You have been given data on Electricity usage. You have data on the bill and a number of pieces of data thought to explain/predict the bill.
Make a good explanation/prediction of electricity bills. Using the data set "Electric Bill Data"
**Please explain using EXCEL program**
1. Perform a multiple regression analysis without the Meter, Heating, Cooling dummy variables. Use the 5% level of significance.
2. Fully explain the results. This means discuss/interpret each term and its significance, explain what the coefficients mean, the R-square, and F-value.
3. Add the three dummy variables. You must be careful, because it is possible to have any combination of new electric meter and new heating or cooling appliances. One can have none of
these, one, two or all three, in various combinations. You should try to develop meaningful dummy variables such as:
1=None, 0=else;1=all new, 0=else;1=Emeter, 0=else;1=Emeter and New Heat, 0=else;1=New Heat, 0=else;1=New Heat and New Cool, 0=else;1=New Cool, 0=else.
4. Using the complete model, drop those variables that are not 5% significant.
5. Write out an ‘executive summary' of your best results, as per the example below.
6. Using Bill and Time (why can't you use year or month?), perform a simple regression, performing the analyses above. Forecast two months of bills ahead.
7. Using Bill and Time and Time 2, perform a simple regression, performing the analyses above. Forecast two months of bills ahead.
8. Of these last two models, which do you conclude is the best model? Why? Are either of these better than the multiple regressions performed above?
Attachment:- Electric Bill Data.rar