Decision Statistic and Science

4. Describe the regression statistics for the new model. What numbers in the regression report are important and what do they mean? Are there any indications that the model should not be used?

One of the important numbers and parts of the regression report is the R2 value that shows how the regression model analyzes the percentage of variability and also the variability unaccounted for. The R2 value grows quite significantly in comparison to the first model of oil usage and degree-days; the difference is an increase of. However, in comparison of the model analyzing better is the Degree-Days model, although there remains a % of the difference unexplainable. However, because of the R2 value ranging over 50%, the new model holds promises to do a moderately and fairly passing job in predicting oil usage. Another component of the regression report is the standard error measures the ranges of predictions, where the new model holds much lower standard error comparably to the older model. The standard error points out that % of the predictions will be made within above or below the predicted oil usage. The P value shows the importance of specific data in the production of an accurate model. Again with the comparison of both models, the P value decreases. This shows when more data is collected the Degree Days model is much more accurate. In regards to P values, the Home Index 4 holds a high value, which pertains to the weakness to the new model. Also the Number of People’s P value is cat that holds some issue with the entirety of the data for Number of People. Another important part is the significance F, where the probability that shows better predictions made from the use of the average of y-values. For the new model the significance F is with in comparison to the Significance F of the Degree Days model is. With the comparison, there is an obvious decrease in the Significance F. However, because of the extremely small values presented by both Significance F values of...