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Model Development:

As a first step, all the individual variables were regressed with the dependent
variable: Water and the R2 values as well as the p-values of the significance of
the variables were noted.
Rsquare
Temperatu
re
Production
Days
Persons

pvalue

0.081
0.398
0.008
0.171

0.266
0.006
0.734
0.099

Now, multivariate regression was performed to come up with an equation like:


Water = 0 + 1Temperature + 2Production + 3Days + 4Persons
Coefficie
nts
Intercept
Temperat
ure
Productio
n

PValue value
6360.
34 0.000

Days
Persons

13.87

0.020

0.21
126.6
9
21.82

0.001
0.022
0.011

The overall adjusted R-square was 0.689.


However, from the data, it can be seen that having a variable like
Production/Days might be a better input into seeing how much water gets used.
So, this transformation was made and the regression was run again.
Water = 0 + 1Temperature + 2Production/Days + 3Persons
Coefficient
s
Intercept
Temperature
Production/
Days
Persons

PValue value
3688.
76 0.000
14.77 0.005
4.66
22.82

0.000
0.003

Hence, it can be seen that the overall regression is better. The adjusted R-square
for this was 0.732, which is way better than the first case.

Output:
Analysis of Variance
Source
Regression
Temperature
Production/Days
Persons
Error
Total

DF
3
1
1
1
13
16

Adj SS
2498176
614311
1624505
693920
694455
3192632

Adj MS
832725
614311
1624505
693920
53420

F-Value
15.59
11.50
30.41
12.99

P-Value
0.000
0.005
0.000
0.003

Model Summary
S
231.127

R-sq
78.25%

R-sq(adj)
73.23%

R-sq(pred)
67.13%

Coefficients
Term
Constant
Temperature
Production/Days
Persons

Coef
3689
14.77
4.659
-22.82

SE Coef
756
4.36
0.845
6.33

T-Value
4.88
3.39
5.51
-3.60

P-Value
0.000
0.005
0.000
0.003

VIF
1.04
5.90
5.81

Regression Equation
Water = 3689 + 14.77 Temperature + 4.659 Production/Days - 22.82 Persons

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