As an example, suppose that I am interested in predicting what proportion of a rain water tank will be full today. I have the following pieces of information:
- The proportion of the rain water tank that is full yesterday.
- Other predictors like number of people using the rain water tank.
What sort of analysis should I use to model this proportion? Can I:
- Fit a logistic regression model and use the proportion of the rain water tank that is full yesterday as one of the predictors.
- Calculate the change in proportion between today and yesterday, use that as the response in a regression model.
- Use a Bayesian type model where the proportion of the rain water that is full yesterday is the prior in the model.
- Use time series analysis, even though there are only two points in time where we observe the fullness of the tank.