(***) (Microsoft Excel problem) Wayne Banker is in charge of planning water usage for agriculturally intensive Burke County. August is the peak month of water usage for Burke County. Wayne has collected the following statistics from the past 15 years, showing the total March–June rainfall (in inches), average daily high temperature in July, and number of acre-feet of water used in August by farms in the area. Wayne wants to know if he can predict how much water will be needed in August, given the March– June rainfall and July temperature data.
Use Excel’s regression function to develop a multiple regression forecast for Wayne. What is the R2 for the model? Use the model to forecast water usage for 1998–2013. Calculate the MFE and MAPE for the model. In your opinion, how good is the model?
