Explore BrainMass

Explore BrainMass

    Regression Analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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
    <>
    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

    © BrainMass Inc. brainmass.com June 3, 2020, 7:00 pm ad1c9bdddf
    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.

    $2.19

    ADVERTISEMENT