# Regression Analysis

Hi! Can you help/guide me with a regression analysis on the data I've used this data for two papers. I was confused enough before but now????? My project has been comparing gasoline prices in the U.S. from 1975 to the mean average in 2006. Can you assist me in this final headache? I'm supposed to interpret the results of regression, state the limitations describe the significance. I need help.

H0: The mean price of gasoline in 2006 is the same as compared to gasoline prices in1975

H1: Gasoline prices are actually higher overall now as compared to 1975

_

Let x be the mean gasoline price now ($2.68)

Let y be the mean gasoline price 30 year ago ($1.80)

x - y ~ t with n1+n2 -1 degrees of freedom

s v ( 1/n1 + 1/n2 )

where s^2 = n1s1^2 + n2s2^2

n1+n2-1

s1^2 = 1 ∑( xi - x )^2

n1-1

Where n1 is the number of gasoline prices now

s2^2 = 1 ∑( yi - y )^2

n2-1

Where n2 is the number of gasoline prices in 1975

Conclusion: If calculated value is less than critical value accept H0 else reject Ho.

Appendix:

Historical Gas Prices

(Adjusted for inflation)

Year Price Per Gallon

1950 $1.91

1955 $1.85

1960 $1.79

1965 $1.68

1970 $1.59

1975 $1.80

1980 $2.59

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1985 $1.90

1990 $1.51

1995 $1.28

2001 $1.66

2002 $1.31

2003 $1.52

2004 $1.79

2005 $2.28

2006 (so far) $2.68

Source: U.S. DOE

Normal Hypothesis Two Sample Means and appears as follows:

Test of Normal Hypothesis

Two Sample Means

Input Data

X1_mean 2.68

X2_mean 1.8

s1_StdDev 0.44

s2_StdDev 0.44

n1_sample 1

n2_sample 1

Alpha 0.05

Calculated Value

z 1.414213562

Test for left tail

LftCrt_zVal #NAME?

Conclusion #NAME?

p-value 0.921350396

Test for Right Tail

RtCrt_zVal -1.644853627

Conclusion Reject Ho

p-value 0.078649604

Test for Two Tail

AbsCrt_zVal 1.959963985

Conclusion RejectHo

p-value 0.157299207

Step 1 of the 5 Step Process is: State the Null and Alternate Hypothesis

Ho: X1=X2 The mean price of gasoline today is equal to 1975

H1: X1>X2 The mean price of gasoline today is more than in 1975

Step 2 of the 5 Step Process is: Select a Level of significance

.05

Step 3 of the 5 Step Process is: Identify the Test Statistic

The test statistic as indicated above is the Test of Normal Hypothesis Two sample

Means.

Step 4 of the 5 Step Process is: Formulate a Decision Rule

Accept Ho if Critical value is more than calculated value

Step 5 of the 5 Step Process is: Decision

Reject Ho

https://brainmass.com/statistics/regression-analysis/regression-analysis-83249

#### Solution Summary

The solution explains the questions in a good amount of detail. It can be easily understood by anyone with a basic understanding of Regression. Overall, a good response.