Consider the data in the Excel file Nuclear Power. Use simple linear regression
ID: 3390835 • Letter: C
Question
Consider the data in the Excel file Nuclear Power. Use simple linear regression to forecast the data. What would be the forecasts for the next 3 years?
Nuclear Electric Power Production (Billion KWH) Year US Canada France 1980 251.12 35.88 63.42 1981 272.67 37.8 99.24 1982 282.77 36.17 102.63 1983 293.68 46.22 135.99 1984 327.63 49.26 180.47 1985 383.69 57.1 211.19 1986 414.04 67.23 239.56 1987 455.27 72.89 249.27 1988 526.97 78.18 260.29 1989 529.35 75.35 288.72 1990 576.86 69.24 298.38 1991 612.57 80.68 314.77 1992 618.78 76.55 321.52 1993 610.29 90.08 349.78 1994 640.44 102.44 341.98 1995 673.4 92.95 358.37 1996 674.73 88.13 377.47 1997 628.64 77.86 375.71 1998 673.7 67.74 368.59 1999 728.25 69.82 374.53 2000 753.89 69.16 394.4 2001 768.83 72.86 400.02 2002 780.06 71.75 414.92 2003 763.73 71.15 419.02 2004 788.53 85.87 425.83 2005 781.99 87.44 428.95 2006 787.22 93.07 427.68Explanation / Answer
Sol)
Let ue take Regression line between year and US
The regression equation is
y=a+bx
where y is US and x is year
from excel
The fitted regression equation is
y=-43276.4+22.004 (Year)
Now forecasts for next 3 years
when x=2007 then y =y=-43276.4+22.004 (Year)
y=-43276.4+22.004 (2007)= 885.628
when x=2008 then y =y=-43276.4+22.004 (Year)
y=-43276.4+22.004 (2008)=907.632
when x=2009 then y =y=-43276.4+22.004 (Year)
y=-43276.4+22.004 (2009)=929.636
Coefficients Standard Error Intercept -43276.4 2276.032653 year 22.004 1.142004652