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Problem 1: Oil Production Data: The Data in the following are the annual world crude oil...

Problem 1: Oil Production Data: The Data in the following are the annual world crude oil production in millions of barrels for the period 1880-1988. The data are taken from Moore and McCabe( 1993, p. 147).

Here is the code help you to paste the data into your R.

data5<-'year barrels
1880 30
1890 77
1900 149
1905 215
1910 328
1915 432
1920 689
1925 1069
1930 1412
1935 1655
1940 2150
1945 2595
1950 3803
1955 5626
1960 7674
1962 8882
1964 10310
1966 12016
1968 14104
1970 16690
1972 18584
1974 20389
1976 20188
1978 21922
1980 21722
1982 19411
1984 19837
1986 20246
1988 21388
'
data5n<-read.table(textConnection(object=data5),
header=TRUE,
sep="",
stringsAsFactors = FALSE)

  1. Construct a scatter plot of the oil production variable (OIL) versus Year and observe that the scatter of points on the graph is not linear. In order to fit a linear model to these data, OIL must be transformed.
  2. Construct a scatter plot of log(OIL) versus Year. The scatter of points now follows a straight line from 1880 to 1973. Political turmoil in the oil-producing regions of the Middle East affected patterns of oil production after 1973.

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Expert Solution

milcah answered 5 months ago
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