The authors of the paper "Power-Load Prediction Based on Multiple Linear Regression Model"t were interested in predicting the load on the electric power system in China using data on y = Power consumption (in hundreds of millions of kwh), x, - Population (in millions), and x2 = Gross domestic product (in billions of dollars), for 21 years. The model equation proposed in the paper is y--113,527 + 0.974x, + 0.057x, + (a) According to this model, what is the mean power consumption (in hundreds of millions of kwh) for a year if the population was 160,000 million and the gross domestic product was 600,000 billion dollars? hundreds of millions of kwh (b) Interpret the value of , in this model. When the gross domestic product V v is fixed, the mean increase in (power consumption (in hundreds of millions of kwh) v v associated with a (1-million unit v increase in (population v is 0.974.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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