Please answer eve Consideration of InflationIn all of your previous problems, you examined trends that do not take inflation into account. Inthis extension, you will reproduce the analysis after adjusting the data for inflation.11. Use the following web-site to convert the price of gasoline to inflated prices for thecurrent year. Add these values to the table that follows.http://www.bls.gov/data/inflationcalculator.htmYears since20000123456789101112Gas Price perGallon$1.30$1.47$1.14$1.47$1.59$1.82$2.32$2.27$3.05$1.79$2.73$3.09$3.40Gas Price Adjustedfor Inflation*What you are going to do here is use the year 2000 as your baseline for all years. On the web-site, enter the price in the first field, always leave the second field 2000, and adjust "Has thesame buying power as" to the year next to each price. When you click "Calculate," you will seethe adjusted price. That is what you write in the last column of the table for each year.For example, when you compute the last field, it should look like this: CPI Inflation Calculator$in 2000Has the same buying power as:$4.53in 2012Price ($)12. You will now create a scatter plot using the years vs. the adjusted gasoline prices.$4.00$3.50$3.00$2.50$2.00$1.50$1.00$0.50$0.00Calculate03.40Average Price ($) of Regular Unleaded Gasoline at thebeginning of the year Adjusted for Inflation185Years since 200091011121313. Using your calculator, find a linear regression equation for years vs. adjusted gasolineprices. Also give the r and r²2 values for this equation.14. Using your calculator, find a quadratic regression equation for years vs. adjusted gasolineprices. Also give the r and r² values for this equation.15. Now, using the new quadratic model, predict what the price of gas will be in the year2020. Does this cause any concern?Reflections16. Do you believe the models that use the inflated prices are better models? Why or whynot?17. Of all 4 models (equations) you have created in this assignment, which one do youbelieve is the best model and why?

Since you have posted multiple questions, we will provide the solution only to the first question as…

11. Use the following web-site to convert the price of gasoline to inflated prices for the current year. Add these values to the table that follows. http://www.bls.gov/data/inflation Years since 2000 0 1 2 3 4 5 6 7 8 9 10 11 12 Gas Price per Gallon $1.30 $1.47 $1.14 $1.47 $1.59 $1.82 $2.32 $2.27 $3.05 $1.79 $2.73 calculator.htm $3.09 $3.40 Gas Price Adjusted for Inflation *What you are going to do here is use the year 2000 as your baseline for all years. On the web- site, enter the price in the first field, always leave the second field 2000, and adjust "Has the same buying power as" to the year next to each price. When you click "Calculate," you will see the adjusted price. That is what you write in the last column of the table for each year. For example, when you compute the last field, it should look like this:

11. Use the following web-site to convert the price of gasoline to inflated prices for the current year. Add these values to the table that follows. http://www.bls.gov/data/inflation Years since 2000 0 1 2 3 4 5 6 7 8 9 10 11 12 Gas Price per Gallon $1.30 $1.47 $1.14 $1.47 $1.59 $1.82 $2.32 $2.27 $3.05 $1.79 $2.73 calculator.htm $3.09 $3.40 Gas Price Adjusted for Inflation *What you are going to do here is use the year 2000 as your baseline for all years. On the web- site, enter the price in the first field, always leave the second field 2000, and adjust "Has the same buying power as" to the year next to each price. When you click "Calculate," you will see the adjusted price. That is what you write in the last column of the table for each year. For example, when you compute the last field, it should look like this:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer eve

Consideration of Inflation
In all of your previous problems, you examined trends that do not take inflation into account. In
this extension, you will reproduce the analysis after adjusting the data for inflation.
11. Use the following web-site to convert the price of gasoline to inflated prices for the
current year. Add these values to the table that follows.
http://www.bls.gov/data/inflation
calculator.htm
Years since
2000
0
1
2
3
4
5
6
7
8
9
10
11
12
Gas Price per
Gallon
$1.30
$1.47
$1.14
$1.47
$1.59
$1.82
$2.32
$2.27
$3.05
$1.79
$2.73
$3.09
$3.40
Gas Price Adjusted
for Inflation
*What you are going to do here is use the year 2000 as your baseline for all years. On the web-
site, enter the price in the first field, always leave the second field 2000, and adjust "Has the
same buying power as" to the year next to each price. When you click "Calculate," you will see
the adjusted price. That is what you write in the last column of the table for each year.
For example, when you compute the last field, it should look like this:

CPI Inflation Calculator
$
in 2000
Has the same buying power as:
$4.53
in 2012
Price ($)
12. You will now create a scatter plot using the years vs. the adjusted gasoline prices.
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Calculate
0
3.40
Average Price ($) of Regular Unleaded Gasoline at the
beginning of the year Adjusted for Inflation
1
8
5
Years since 2000
9
10
11
12
13
13. Using your calculator, find a linear regression equation for years vs. adjusted gasoline
prices. Also give the r and r²2 values for this equation.
14. Using your calculator, find a quadratic regression equation for years vs. adjusted gasoline
prices. Also give the r and r² values for this equation.
15. Now, using the new quadratic model, predict what the price of gas will be in the year
2020. Does this cause any concern?
Reflections
16. Do you believe the models that use the inflated prices are better models? Why or why
not?
17. Of all 4 models (equations) you have created in this assignment, which one do you
believe is the best model and why?

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