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 ( $ ) 47.79 2.638 44.62 2.636 81.08 2.944 43.67 2.528 40.58 2.623 48.64 2.682 The correlation coefficient for the data is =r0.954 and =α0.01. Should regression analysis 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 $57 a barrel. Round the answer to at least three decimal places. When oil is $57 a barrel, gas costs $ per gallon.
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.
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 (
$
|
|---|---|
|
47.79
|
2.638
|
|
44.62
|
2.636
|
|
81.08
|
2.944
|
|
43.67
|
2.528
|
|
40.58
|
2.623
|
|
48.64
|
2.682
|
The
|
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