Homework Help is Here – Start Your Trial Now!
Engineering
Computer Science
Due primarily to the price controls of OPEC, the price of crude oil has risen dramatically since the early 1970s. As a result, motorists have been confronted with a similar upward spiral of gasoline prices. The data in the Table are typical prices for a gallon of regular leaded gasoline and a barrel of crude oil for the indicated years. a. Use the data to calculate the least-squares equation that describes the relationship between the price of a gallon of gas and the price of a barrel of crude oil [show all your steps with equations, perform your calculations using hand calculator, not Excel]. b. Does your least-squares line appear to be an appropriate characterization of the relationship between the price of the gallon of gas and the price of a barrel? How did you conclude your answer? c. If the price of crude oil fell to $20 per barrel, to what level would the price of regular gasoline fall? d. Use Excel to draw the scatter plot and show [in Excel] R? and the linear regression equation. Compare your results [ Your least square equation and R?] from part a and this part [ Excel Least square equation and R²]. Year Gasoline (cents/gal) Crude Oil ($/bbl) 1973 38.8 4.15 1975 56.7 10.38 1976 59.0 10.89 1977 62.2 11.96 1978 62.6 12.46 1979 85.7 17.72 1980 119.1 28.07 1981 133.3 36.11

Due primarily to the price controls of OPEC, the price of crude oil has risen dramatically since the early 1970s. As a result, motorists have been confronted with a similar upward spiral of gasoline prices. The data in the Table are typical prices for a gallon of regular leaded gasoline and a barrel of crude oil for the indicated years. a. Use the data to calculate the least-squares equation that describes the relationship between the price of a gallon of gas and the price of a barrel of crude oil [show all your steps with equations, perform your calculations using hand calculator, not Excel]. b. Does your least-squares line appear to be an appropriate characterization of the relationship between the price of the gallon of gas and the price of a barrel? How did you conclude your answer? c. If the price of crude oil fell to $20 per barrel, to what level would the price of regular gasoline fall? d. Use Excel to draw the scatter plot and show [in Excel] R? and the linear regression equation. Compare your results [ Your least square equation and R?] from part a and this part [ Excel Least square equation and R²]. Year Gasoline (cents/gal) Crude Oil ($/bbl) 1973 38.8 4.15 1975 56.7 10.38 1976 59.0 10.89 1977 62.2 11.96 1978 62.6 12.46 1979 85.7 17.72 1980 119.1 28.07 1981 133.3 36.11

Operations Research : Applications and Algorithms
Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter13: Decision Making Under Uncertainty
Section13.2: Utility Theory
Problem 15P
See similar textbooks
icon
Related questions
Question
Due primarily to the price controls of OPEC, the price of crude oil has risen dramatically since the early 1970s. As a result, motorists have been confronted with a similar upward spiral of gasoline prices. The data in the Table are typical prices for a gallon of regular leaded gasoline and a barrel of crude oil for the indicated years. a. Use the data to calculate the least-squares equation that describes the relationship between the price of a gallon of gas and the price of a barrel of crude oil [show all your steps with equations, perform your calculations using hand calculator, not Excel]. b. Does your least-squares line appear to be an appropriate characterization of the relationship between the price of the gallon of gas and the price of a barrel? How did you conclude your answer? c. If the price of crude oil fell to $20 per barrel, to what level would the price of regular gasoline fall? d. Use Excel to draw the scatter plot and show [in Excel] R? and the linear regression equation. Compare your results [ Your least square equation and R²] from part a and this part [ Excel Least square equation and R2]. Year Gasoline (cents/gal) Crude Oil ($/bbl) 1973 38.8 4.15 1975 56.7 10.38 1976 59.0 10.89 1977 62.2 11.96 1978 62.6 12.46 1979 85.7 17.72 1980 119.1 28.07 1981 133.3 36.11
Transcribed Image Text:Due primarily to the price controls of OPEC, the price of crude oil has risen dramatically since the early 1970s. As a result, motorists have been confronted with a similar upward spiral of gasoline prices. The data in the Table are typical prices for a gallon of regular leaded gasoline and a barrel of crude oil for the indicated years. a. Use the data to calculate the least-squares equation that describes the relationship between the price of a gallon of gas and the price of a barrel of crude oil [show all your steps with equations, perform your calculations using hand calculator, not Excel]. b. Does your least-squares line appear to be an appropriate characterization of the relationship between the price of the gallon of gas and the price of a barrel? How did you conclude your answer? c. If the price of crude oil fell to $20 per barrel, to what level would the price of regular gasoline fall? d. Use Excel to draw the scatter plot and show [in Excel] R? and the linear regression equation. Compare your results [ Your least square equation and R²] from part a and this part [ Excel Least square equation and R2]. Year Gasoline (cents/gal) Crude Oil ($/bbl) 1973 38.8 4.15 1975 56.7 10.38 1976 59.0 10.89 1977 62.2 11.96 1978 62.6 12.46 1979 85.7 17.72 1980 119.1 28.07 1981 133.3 36.11
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Intelligent Machines
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, computer-science and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Operations Research : Applications and Algorithms
Operations Research : Applications and Algorithms
Computer Science
ISBN:
9780534380588
Author:
Wayne L. Winston
Publisher:
Brooks Cole
SEE MORE TEXTBOOKS