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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

Database System Concepts
Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
Problem 1PE
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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
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