A researcher is interested in developing a linear model for the electr

Question

A researcher is interested in developing a linear model for the electricity consumption of a household having an AC (1.5 ton) so that she can predict the electricity consumption. For this purpose, she selects 25 houses and records the electricity consumption (in kWh), size of house (in square feet) and AC hours for one month during summers. The results obtained are:
b̂₀ = 22.381 b̂₁ = 1.6161, b̂₂ = 0.0144, SS( b̂0) = 12526.08, SS( b̂0, b̂1) = 17908.47, SS( b̂0, b̂2) = 17125.23, SS( b̂0, b̂1, b̂2) = 18079.0, σ²= 10.53, SE( b̂₁) = 0.17,= and SE( b̂₂) = 0.0035.

Build a regression model by selecting appropriate regressors in the model using the Stepwise Selection method.

11 Mar 2022

Answer :

Word Count : 324

We will use the Stepwise Selection method to determine the appropriate regressors for the model. Stepwise selection combines forward selection and backward elimination to find the best subset of predictors. ### Given Data: We have a multiple linear regression model of the form: \[ Y = b_0 + b_1 X_1 + b_2 X_2 + \epsilon \] where: - \( Y \) = Electricity consumption (in kWh) - \( X_1 \) = AC hours per month - \( X_2 \) = House __________ __________ __________ ___ _____.
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Job 1	Sequence	A	B	C	D	E
	Time (in hours)	1	2	3	5	4
Job 2	Sequence	C	A	D	E	B
	Time (in hours)	3	4	2	1	5

Year	Quarter
Year	^Q1	^Q2	^Q3	^Q4
2011	554	590	616	653
2012	472	501	521	552
2013	501	531	553	595
2014	403	448	460	480

	^Dl	^D2	^D3	^D4	Capacity
^S1	19	30	50	10	7
^S2	70	30	40	60	9
^S3	40	8	70	20	18
Demand	5	8	7	14	34