What is the relationship between the price of crude oil and the price you pay at the pump for gasoline? The file Oil & Gasoline contains the price ($) for a barrel of crude oil (Cushing, Oklahoma, Spot price) and a gallon of gasoline (U.S. average conventional spot price) for 338 weeks. ending June 2, 2017. a. Construct a scatter plot with the price of oil on the horizontal axis and price of gasoline on the vertical axis. b. Use the latest-squares method to develop a simple linear regression equation to predict the price of a gallon of gasoline using the price of a barrel of crude oil as the independent variable. c. Interpret the meaning of the slop, b 1 , in this problem. d. Plot the residuals versus the time period. e. Compute the Durbin-Watson statistic. f. At the 0.05 level of significance, is there evidence of positive autocorrelation among the residuals? g. Based on the results of (d) through (f), is there reason to question the validity of the model? h. What conclusions can you reach concerning the relationship between the price of a barrel of crude oil and the price of a gallon of gasoline?
What is the relationship between the price of crude oil and the price you pay at the pump for gasoline? The file Oil & Gasoline contains the price ($) for a barrel of crude oil (Cushing, Oklahoma, Spot price) and a gallon of gasoline (U.S. average conventional spot price) for 338 weeks. ending June 2, 2017. a. Construct a scatter plot with the price of oil on the horizontal axis and price of gasoline on the vertical axis. b. Use the latest-squares method to develop a simple linear regression equation to predict the price of a gallon of gasoline using the price of a barrel of crude oil as the independent variable. c. Interpret the meaning of the slop, b 1 , in this problem. d. Plot the residuals versus the time period. e. Compute the Durbin-Watson statistic. f. At the 0.05 level of significance, is there evidence of positive autocorrelation among the residuals? g. Based on the results of (d) through (f), is there reason to question the validity of the model? h. What conclusions can you reach concerning the relationship between the price of a barrel of crude oil and the price of a gallon of gasoline?
Solution Summary: The author demonstrates how to construct a scatter plot using Minitab.
What is the relationship between the price of crude oil and the price you pay at the pump for gasoline? The file Oil & Gasoline contains the price
($)
for a barrel of crude oil (Cushing, Oklahoma, Spot price) and a gallon of gasoline (U.S. average conventional spot price) for 338 weeks. ending June 2, 2017.
a. Construct a scatter plot with the price of oil on the horizontal axis and price of gasoline on the vertical axis.
b. Use the latest-squares method to develop a simple linear regression equation to predict the price of a gallon of gasoline using the price of a barrel of crude oil as the independent variable.
c. Interpret the meaning of the slop,
b
1
,
in this problem.
d. Plot the residuals versus the time period.
e. Compute the Durbin-Watson statistic.
f. At the 0.05 level of significance, is there evidence of positive autocorrelation among the residuals?
g. Based on the results of (d) through (f), is there reason to question the validity of the model?
h. What conclusions can you reach concerning the relationship between the price of a barrel of crude oil and the price of a gallon of gasoline?
Definition Definition Number of subjects or observations included in a study. A large sample size typically provides more reliable results and better representation of the population. As sample size and width of confidence interval are inversely related, if the sample size is increased, the width of the confidence interval decreases.
Given below is the scatter plot of the market value and profit of 50 U.S. companies.
Market Value ($000)
Positive relationship
Negative relationship
What kind of relationship is represented?
No relationship
Scatter Plot
at maak Informat
Profits ($000)
VAL
2. Describe the association that exists for each pair of variables.
a. Time spent at work and time spent at home
b. Number of days absent in school and grade point average
C. Weight and IQ
d. Position at work and monthly salary
of variables, Then, construct a scatter plot for each
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Which is the best chart: Selecting among 14 types of charts Part II; Author: 365 Data Science;https://www.youtube.com/watch?v=qGaIB-bRn-A;License: Standard YouTube License, CC-BY