2025 Orange County Water Demand Projection Model
The derivation of appropriate coefficient values (both sign and magnitude) through regression requires sound judgment of demand behavior and the inclusion of numerous explanatory variables to address multiple influences on demand. Figure 3-1 illustrates that excluding key explanatory variables from the regression, which account for reasons not associated with responses to price (such as mandatory state restrictions or local conservation), could incorrectly attribute changes in demand to the volumetric price of water (i.e., incorrectly magnifying the effect price has on demand).
3-2
Appendix G - 39
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