The Energy Information Administration (EIA), created by Congress in 1977, is a statistical agency of the U.S.
Question:
a. Examine the relationship between price of gasoline and the annual amount of imported crude oil. Construct a scatter plot depicting this relationship.
b. Determine the order of the polynomial that would fit the data displayed in part a. Express “Imports” in millions of gallons, i.e., 3,146,454 > 1,000,000 = 3.146454. Produce an estimate of this polynomial.
c. Is a linear or quadratic model more appropriate for predicting the price of gasoline using the annual quantity of imported oil? Conduct the appropriate hypothesis test to substantiate your answer.
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Related Book For
Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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