As Yet Another Earthquake Rattled His China Cabinet, the Data

question 26

Essay

As yet another earthquake rattled his china cabinet, the data scientist vowed to once and for all determine whether hydraulic fracturing (where water is injected into the earth)was predictive of the number of earthquakes in the region. Using the data below, develop a regression equation and calculate the MAD and MAPE.
$$\begin{array} { | c | c | } \hline \text { Injections } & \text { Earthquakes } \\\hline 137 & 682 \\\hline 331 & 833 \\\hline 360 & 905 \\\hline 442 & 1008 \\\hline 478 & 1482 \\\hline 529 & 1742 \\\hline\end{array}$$

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Definitions:

Public Utilities

Companies that provide essential services such as water, electricity, and gas to the public and are often subject to regulatory oversight.

Short Run

A timeframe in economics during which at least one input (like plant size) is fixed and cannot be changed, focusing on immediate operational decisions.

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing for full adjustment to changes.

Marginal Revenue Curve

A graph that shows how marginal revenue varies as the quantity of output changes, typically downward sloping for firms in competitive markets.