Example 3 – level I and II data cleaning

In this example, we want to use Electric_Production.csv to make predictions. We are specifically interested in being able to predict what the monthly electricity demand will be 1 month from now. This 1-month gap is designed in the prediction model so that the predictions that come from the model will have decision-making values; that is, the decision-makers will have time to react to the predicted value.

We would like to use linear regression to perform this prediction. The independent and dependent attributes for this prediction are shown in the following diagram:

Figure 10.7 – The independent and dependent attributes needed for the prediction task

Let's go through the independent attributes shown in the preceding diagram:

• Average demand of the month over the years: For instance, if the month we want to predict demands for is March 2022, we want to use the average of the demands for every...