DWP Data Can Southern California's water supply in future years be predicted from past data? One factor affecting water availability is stream runoff. If runoff could be predicted, engineers, planners and policy makers could do their jobs more efficiently. Multiple linear regression models have been used in this regard. The following dataset contains 43 years worth of precipitation measurements (in inches) taken at six sights in the Owens Valley labeled APMAM (Mammoth Lake), APSAB (Lake Sabrina), APSLAKE (South Lake), OPBPC (Big Pine Creek), OPRC (Rock Creek), and OPSLAKE, and stream runoff volume (measured in acre-feet) at a sight near Bishop, California (labeled BSAAM). Year APMAM APSAB APSLAKE OPBPC OPRC OPSLAKE BSAAM 1948 9.13 3.58 3.91 4.10 7.43 6.47 54235 1949 5.28 4.82 5.20 7.55 11.11 10.26 67567 1950 4.20 3.77 3.67 9.52 12.20 11.35 66161 ... 1986 4.93 3.26 4.58 26.47 15.33 26.46 118144 1987 5.99 2.76 3.98 4.80 6.85 6.36 61229 1988 6.83 6.82 5.18 7.20 9.01 9.88 58942 1989 8.80 5.06 4.92 8.05 9.60 9.58 53965 1990 7.10 5.06 6.05 5.80 6.50 8.41 49774 EXERCISES Can precipitation predict runoff volume? There is certainly good reason to think so. The major source of runoff is precipitation, although there may be some time lag related to season. The following hints might prove useful. 1) Try to select a set of "important" explanatory variables. 2) There are very strong linear relationships between the explanatory variables, giving rise to the phenomenon of multicollinearity. 3) Some regression models contain outliers. Remove them and reexamine your model. 4) Since you are dealing with time ordered data check for the presence of autocorrelation. George Michailides gmichail@stat.ucla.edu