Assume you are involved in a study sponsored to determine whether residential el

Question

Assume you are involved in a study sponsored to determine whether residential electricity prices (REP) differ by region across the United States. REP is calculated based on cents per kilowatt hour charged by each utility for their residential customers. The U.S. we would like to examine whether the residential electricity prices (REP) differ by region – Pacific Coast, Upper Midwest, Southwest, Northeast and Southeast. What would the null and alternative hypotheses be in this case?

Also, If some other factor, such as availability of alternate energy (which can be viewed as a continuous-level variable) helps explain differences in REP, how would you take that into account in your analysis?

Further,

If We examined whether REP changes over time for utilities it is tracking, will this increase or decrease explained variation?why?

Explanation / Answer

H0:Prices are Same by Region

Ha:Prices differ by region

If we have other variables again,Then we first find the most appropriate factor.

Then we go to the next hypothesis following.

Say we have availability of alternate energy

Then we shall have H20:No availability of alternative energy & H2a:availability of alternative energy

and so on.

We need to complete one factor so as to enter the second.

If we want to analyse the data,one can do a linear regression or a scatter plot to check the data outlook

One can estimate using various methods say a logit regression,multiple linear regression,generalised linear regression etc

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