1)

Consider the following regression:

Log(Electricity_Use_pc) = 200 + 0.72 log(GDPpc) + 0.0023 Temperature.

N=134

R2=0.33

Please interpret the coefficient on GDPpc.

2) Consider the following regression:

Log(Electricity_Use_pc) = 200 + 0.72 log(GDPpc) + 0.0023 Temperature.

N=134

R2=0.33

Please interpret the coefficient on Temperature (denoted in Celsius).

3) Consider the following regression:

Log(Electricity_Use_pc) = 200 + 0.72 log(GDPpc) + 0.0023 Temperature.

N=134

R2=0.33

Please interpret the R2. Is the R2 high in your opinion?

4) Is the degrees of freedom high enough in Question 1-3for the standard normal critical values to be applied?

5) Consider the model in Questions 1 to 3. Give two (2) examples of other (further) factors that could be included in the regression to model electricity use.

6) What can you say about the reliability of the coefficient estimates in Questions 1 to 3?