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Regression Analysis

I am trying test what is the positive or negative correlation between the price of a gallon of retail gasoline and the company profits.

The company profits range from 0 to 25 billions dollars, while the gas prices range from $2.71 to $3.79 dollars per gallons.

Use the regression equation: Y'= a + bX
Please present the calculations and results and ANOVA
Graphs using a scatter diagram
Make all possible observations and interpret the results

DATA

Gas Prices Earning 2007 Billions
Exxon Shell Sunoco Exxon Shell Sunoco
2.71 2.71 2.71 9.92B 22B 15.7B
2.72 2.71 2.71
2.72 2.71 2.71
2.72 2.71 2.71
2.73 2.72 2.72
2.73 2.72 2.72
2.74 2.72 2.72
2.76 2.76 2.76
2.76 2.76 2.76
2.76 2.76 2.76
2.76 2.78 2.76
2.76 2.78 2.79
2.77 2.78 2.79
2.78 2.79 2.79
2.79 2.79 2.79
2.79 2.79 2.79
2.79 2.79 2.79
2.79 2.79 2.79
2.79 2.79 2.79
2.81 2.79 2.79
2.81 2.79 2.79
2.82 2.82 2.79
2.82 2.82 2.81
2.84 2.82 2.82
2.85 2.82 2.84
2.86 2.85 2.85
2.86 2.86 2.86
2.89 2.86 2.86
2.99 2.86 2.86
3.79 3.72 3.76

Solution Preview

The problem here is that, for each company, we have 30 data points for prices (the x's), but only one data point for earnings (the y's). To make a scatterplot, we have to have equal numbers of x and y values.

To do this, I found the average price per gallon for each company. This means that for each company we have an x (the average price) and a y (the earnings). ...

Solution Summary

This solution provides assistance solving the regression analysis problem below.

$2.19