Homework SourseOil and Gas Prices The average gasoline price per gallon in
Oil and Gas Prices. The average gasoline price per gallon (in cities) and the cost of a barrel of oil are shown for a random selection of weeks from 2009-2010. Is there a linear relationship between the variables? = 0.05
| Oil ($) | 46.25 | 37.51 | 78.00 | 75.39 | 84.88 | 73.78 |
| Gasoline ($) | 2.197 | 2.182 | 2.987 | 3.015 | 3.109 | 3.000 |
Solution
Ho: rho = 0
Ha: rho =/= 0
Using technology, getting the correlation,
r = 0.983524311
As t = r sqrt [(n - 2) / (1 - r^2)], then as df = n - 2 = 4
t = 10.88114349
As alpha = 0.05
df = 4
Then
tcrit = 2.776445105
As t > 2.7764, we reject Ho.
Thus, there is significant linear relationship between the variables. [CONCLUSION]
