Read the Background material, run the multiple regression outlined above and then write a 3- to 4-page report (and attach the Excel printout) answering the following questions:
• What is the R-square of the regression? What does it mean?
• What is the elasticity of TC with respect to Q? Test the significance of
• What is the elasticity of TC with respect to PL? Test the significance of
• What is the elasticity of TC with respect to PF? Test the significance of
• What is the elasticity of TC with respect to PK? Test the significance of
• Can you forecast (predict) what happens to TC if PL doubles (keeping everything else constant)?
• Looking at the ANOVA table, can you conclude the independent variables jointly affect the average housing price?
• Do you find any anomaly in the results? That is, is there any result that does not make sense to you?
• How would inclusion of modern generation mix (Coal, Nuclear, Natural Gas) change the specification of the demand for electricity?