Question 7
The Following Comprehension and Related Questions are Purely Hypothetical
A company has collected data on the average monthly electricity consumed for air conditioning (dependent variable) relative to (i) Average ambient temperature of the month, (ii) Total number of working days in the month and (iii) Average number of employees who have worked in that month. This data is provided in Table-1. Additionally, the correlation matrix for the different variables in Table-1 is provided in Figure-1. Given this information, answer the given subquestions.
| Average Electricity Consumed (in KW) | Average ambient temperature (in Celsius) | Total Number of Working Days (in count) | Average Number of Employees who have Worked (in count) |
|---|---|---|---|
| 250 | 30 | 24 | 91 |
| 237 | 31 | 25 | 90 |
| 272 | 45 | 24 | 88 |
| 274 | 60 | 25 | 87 |
| 298 | 65 | 25 | 91 |
| 301 | 72 | 26 | 94 |
| 300 | 80 | 25 | 87 |
Table-1: Electricity consumption data
| Average Electricity Consumed | Average ambient temperature | Total Number of Working Days | Average Number of Employees who have Worked | |
|---|---|---|---|---|
| Average Electricity Consumed | 1 | |||
| Average ambient temperature | 0.95 | 1 | ||
| Total Number of Working Days | 0.52 | 0.63 | 1 | |
| Average Number of Employees who have Worked | 0.1 | -0.06 | 0.44 | 1 |
Figure-1: Correlation Matrix for Data in Table-1
What is the expected percentage inflation (increase) in the standard error of the beta value corresponding to “Average Number of Employees who have Worked” due to “Total Number of Working Days” if a model with only these two variables is built for predicting “Average Electricity Consumed”? [Note: Enter your answer in “PERCENTAGE” rounded to two decimal places without the percentage symbol. For example, if your answer is 1.235% then enter the answer as “1.24”]