Question

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 ($) Gasoline ($) 55.78 2.654 41.96 2.269 52.08 2.445 57.28 2.710 58.15 2.805 67.59 3.071

Answer 1

The correlation coefficient for the data is 0.978.

The regression analysis should be done.

The equation of the regression line is:

y = 0.8486 + 0.0326*x

Oil	Gasoline
55.78	2.654
41.96	2.269
52.08	2.445
57.28	2.71
58.15	2.805
67.59	3.071

	r²	0.956
	r	0.978
	Std. Error	0.066
	n	6
	k	1
	Dep. Var.	Gasoline
ANOVA table
Source	SS	df	MS	F	p-value
Regression	0.3743	1	0.3743	86.71	.0007
Residual	0.0173	4	0.0043
Total	0.3916	5
Regression output				confidence interval
variables	coefficients	std. error	t (df=4)	p-value	95% lower	95% upper
Intercept	0.8486
Oil	0.0326	0.0035	9.312	.0007	0.0229	0.0424