BUS308 Essentials of Business Statistics
Instructor: Glenn Daniels
May 2, 2012
PART I: 1. Calculate the mean yearly value using the average gas prices by month found in the “Final Project Data Set.”
2. Using the years as your x-axis and the annual mean as your y-axis, create a scatterplot and a linear regression line.
3. Answer the following questions using your scatterplot and linear regression line: a. What is the slope of the linear regression line? Slope = 0.0647 $/gal/year b. What is the Y-intercept of the linear regress line? -127.64 $/gal c. What is the equation of the linear regression line in slope-intercept form? y = 0.0647x – 127.64 d. Based on the linear regression line, what would be an estimated cost of gas in the year 2020? Y(2020) = $3.054/gal e. What are the residuals of each year? See column labeled “Residual” f. Select a current price that you have seen or paid recently for gas. Is that price within the range of the linear regression line or is it an outlier? $3.59/gal. The is outside the range (Max of regression line is $3.129 g. Is it within the confidence interval of 5% or either end? No. The price is 31% greater than the range of the regression line.
FINAL PROJECT: GAS PRICES
BUS308 ESSENTIALS OF BUSINESS STATISTICS
INSTRUCTOR: GLENN DANIELS
MAY 1, 2012
Running Header: Gas Prices 1 The world has seen drastic changes in the price of gasoline because of the need for the consumer. Ten maybe even fifteen years gas prices were as low as $.99, and today it is a totally different scenario based on the point that economically the price of gas has affected us as consumers as well as gas companies. One way pricing will affect my company is based on the shipping prices. When gas prices go up, our