Prediction/Probability Estimation using Regression or Max Likelihood

41 Views Asked by At

Let's say I have a data set of avg. temperatures in a region over 7 years, and the trend is generally increasing.

Example:

2010 = 20.2 degrees,

2011 = 21.9,

2012 = 20.8,

2013 = 22.4,

...

2016 = 25.4

I am interested in finding out whether the avg. temperature will reach a certain level, say 27 degrees or higher by year 2020. How do I calculate or estimate this probability?

I know that if I do a regression, I can find what the regression line predicts the temperature at 2020. But how can I find like a numerical probability? How would I go about using max likelihood?

Thanks!