Here\'s one for the record books. Can someone help mewith this one? Question: Th
ID: 2950183 • Letter: H
Question
Here's one for the record books. Can someone help mewith this one? Question: The average price in dollars of a gallon of unleaded gasolinein December of each year from 1986 to 2008 is given below:1986 0.823 1987 0.961 1988 0.930
1989 0.980 1990 1.354 1991 1.123
1992 1.136 1993 1.070 1994 1.143
1995 1.101 1996 1.260 1997 1.177
1998 0.986 1999 1.298 2000 1.489
2001 1.131 2002 1.394 2003 1.494
2004 1.882 2005 2.186 2006 2.334
2007 3.020 2008 1.59
1. Determine the line of best fit (regression line) for unleadedgasoline prices (per gallon) as a function of year measured for theyears 1986 to 2008. Use the price at the end of the year (Dec) torepresent the year.
2. State an interpretation of the slope value.
3. Use the regression line equation to predict the Decembergasoline price for the current year, 2009.
4. Repeat these computations using only the data from the 21stcentury (years 2000 through 2008, inclusive): determine theregression line and use it to predict the December 2009 price of agallon of gas.
5. Convert the price data for the years 2000 to 2008 to valuesrepresenting 2009 dollars. Use this calculator to converthistorical gasoline prices to current year dollars:http://www.bls.gov/data/inflation_calculator.htm
6. Determine the line of best fit (regression line) for theadjusted data in part 5. Use this equation to predict the December2009 price for a gallon of gas. Compare your results to those usingthe unadjusted figures in part 4, explaining any differences orsimilarities you find.
Here's one for the record books. Can someone help mewith this one? Question: The average price in dollars of a gallon of unleaded gasolinein December of each year from 1986 to 2008 is given below:
1986 0.823 1987 0.961 1988 0.930
1989 0.980 1990 1.354 1991 1.123
1992 1.136 1993 1.070 1994 1.143
1995 1.101 1996 1.260 1997 1.177
1998 0.986 1999 1.298 2000 1.489
2001 1.131 2002 1.394 2003 1.494
2004 1.882 2005 2.186 2006 2.334
2007 3.020 2008 1.59
1. Determine the line of best fit (regression line) for unleadedgasoline prices (per gallon) as a function of year measured for theyears 1986 to 2008. Use the price at the end of the year (Dec) torepresent the year.
2. State an interpretation of the slope value.
3. Use the regression line equation to predict the Decembergasoline price for the current year, 2009.
4. Repeat these computations using only the data from the 21stcentury (years 2000 through 2008, inclusive): determine theregression line and use it to predict the December 2009 price of agallon of gas.
5. Convert the price data for the years 2000 to 2008 to valuesrepresenting 2009 dollars. Use this calculator to converthistorical gasoline prices to current year dollars:http://www.bls.gov/data/inflation_calculator.htm
6. Determine the line of best fit (regression line) for theadjusted data in part 5. Use this equation to predict the December2009 price for a gallon of gas. Compare your results to those usingthe unadjusted figures in part 4, explaining any differences orsimilarities you find.
Explanation / Answer
1)The line of best fit (regression line) for unleaded gasolineprices (per gallon) as a function of year measured for the years 1986 to 2008. Use the price at the end of the year (Dec)to represent the year. Gasoline price = -116.87 + 0.05921year 2) Slope = 0.05921, represents the change in gasoline per unitchange in year. 3) Regression line equation to predict the Decembergasoline price for the current year, 2009 The fitted equation is Gasoline price= -116.87 + 0.05921 year ==> Gasoline price = -116.87+ 0.05921 (2009) = 2.08289 4) The line of best fit (regression line) for unleadedgasoline prices (per gallon) as a function of year measuredfor the years 2000 to 2008. Use the price at the end of theyear (Dec) to represent the year. Gasoline price = -286.6 + 0.14405year Regression line equation to predict the December gasolineprice for the current year, 2009 The fitted equation is Gasoline price= -286.6 + 0.14405 year ==>Gasoline price = -286.6 + 0.14405 (2009) =2.7964 5) Year Price 2000 1.84 2001 1.57 2002 1.65 2003 1.73 2004 2.12 2005 2.38 2006 2.46 2007 3.1 2008 1.57 Year Price 2000 1.84 2001 1.57 2002 1.65 2003 1.73 2004 2.12 2005 2.38 2006 2.46 2007 3.1 2008 1.576) The line of best fit (regression line) for unleadedgasoline prices (per gallon) as a function of year measuredfor the years 2000 to 2008. Use the price at the end of theyear (Dec) to represent the year. Gasoline price = -191 + 0.09633 year Regression line equation to predict the December gasolineprice for the current year, 2009 The fitted equation is Gasoline price= -191 + 0.09633 year ==>Gasoline price = -191 + 0.09633 (2009) = 2.5269 Year Price 2000 1.84 2001 1.57 2002 1.65 2003 1.73 2004 2.12 2005 2.38 2006 2.46 2007 3.1 2008 1.57