Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of a barrel of oil are shown below for a random selection of weeks in 2015 . Oil ( $ ) Gasoline ( $ ) 87.80 3.050 47.67 2.680 58.03 3.044 53.18 2.627 40.38 2.443 41.06 2.349 The correlation coefficient for the data is r=0.825 and α=0.05 . Should regression analysis be done? The regression analysis should not be done. The regression analysis should be done. Find the equation of the regression line. Round the coefficients to at least three decimal places. =y′+abx =a =b Find the cost of gasoline when oil is $64 a barrel. Round the answer to at least three decimal places. Whenoilis$64abarrel,gascosts$pergallon.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Oil and Gas Prices The average gasoline price per gallon (in cities) and the cost of a barrel of oil are shown below for a random selection of weeks in
| Oil (
$
|
Gasoline (
$
|
|---|---|
|
87.80
|
3.050
|
|
47.67
|
2.680
|
|
58.03
|
3.044
|
|
53.18
|
2.627
|
|
40.38
|
2.443
|
|
41.06
|
2.349
|
The
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
