Mathematics Homework Help

Questions:

Although natural gas is currently inexpensive and nuclear power currently (and perhaps deservedly) does not have a good reputation, it is possible that more nuclear power plants will be constructed in the future. Table 4 presents data concerning the construction costs of light water reactor (LWR) nuclear power plants. The dependent variable, C, construction cost, is expressed in millions of dollars, adjusted to a 1976 base. Preliminary analysis of the data and economic theory indicate that variation in cost increases as cost increases. This suggests transforming cost by taking its natural logarithm.

S Power plant capacity in MWe

N Cumulative number of power plants built by the contractor 

Build a multiple regression model to predict ln(C) by taking S and N or their natural logarithms as the independent variables. Make sure to check for multicollinearity.

Use residual analysis and R2 to check your model. 

1. State which variables are important in predicting the cost of constructing an LWR plant, and 
2. State a prediction equation that can be used to predict ln(C).
3. Table 4
4. Data Concerning Construction of Light Water Reactors

Plant

C

S

N

1

460.05

687

14

2

452.99

1,065

1

3

443.22

1,065

1

4

652.32

1,065

12

5

642.23

1,065

12

6

345.39

514

3

7

272.37

822

5

8

317.21

457

1

9

457.12

822

5

10

690.19

792

2

11

350.63

560

3

12

402.59

790

6

13

412.18

530

2

14

495.58

1,050

7

15

394.36

850

16

16

423.32

778

3

17

712.27

845

17

18

289.66

530

2

19

881.24

1,090

1

20

490.88

1,050

8

21

567.79

913

15

22

665.99

828

20

23

621.45

786

18

24

608.8

821

3

25

473.64

538

19

26

697.14

1,130

21

27

207.51

745

8

28

288.48

821

7

29

284.88

886

11

30

280.36

886

11

31

217.38

745

8

32

270.71

886

11