5. Crystal Ball Training. Forecasting. Toledo Residential Gas Usage

Let´s work on multiregression with the Toledo Residential Gas. It´s pretty similar to the last exercise but we have to pick multiregression as forecast method, and in this case is ciclical.

   

Summary

 
In this example, you work as a forecaster for the Residential Division of Toledo Gas Company. The Public Utilities Commission requires you to predict the gas usage for the coming year to make sure that the company can meet the demand. You have four data series, and usage is dependent on the three independent series. You will apply Predictor and multiple linear regression to create a usage forecast for the next year.

In this model, there is one dependent variable for the historical residential gas usage. The independent variables are:

- Number of occupation permits issued (new housing starts)
- Average temperature per month
- Unit cost of natural gas