Quantitative Study of Electricity Consumption: Regression on the Main Components

Electricity management is a comprehensive field within environmental science that involves the regulation, oversight, and preservation of energy. It contributes greatly to improve the standard of living of every individual in different levels. This study seeks to determine the factors that affect electricity consumption in the residential sector of Tunisia. To achieve this goal and address the issue of multicollinearity among the explanatory variables, we chose principal component regression (PCR) as our regression model. The effectiveness of this PCR model will be validated through its application to a regional dataset, which was previously analyzed with initially correlated variables.