Weber State University How Do Oil Prices Affect Gas Prices Statistical Analysis

you will analyze a data set with an independent and dependent variable. The first thing that you should do is come up with a research question of the form: “How does x affect y?” For example, I might ask ” How do oil prices affect gas prices?” You should make sure that you can find data for the question you ask. You might want to look around online for data sets before coming up with a question. I encourage you to read all of the questions/tasks below before choosing a research question and data set. You should submit the assignment in a Microsoft Excel file. You should complete the following tasks:

1) Write your research question and identify your independent variable and your dependent variable.

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2) Make a scatter plot with the independent variable on the x-axis and dependent variable on the y-axis. Add a regression line to the plot, and show the equation. Interpret the slope of the equation.

3) Use the Data Analysis Toolpak to run a simple linear regression. Explain whether the slope estimate is statistically significant using the p-value. Interpret the R-Square value. Choose one other value from the output table to interpret (not the p-value or R-Square.

4) Make a categorical or “dummy” variable to add to your regression. Run a multiple regression with this new variable and interpret the results.

5) Use your categorical variable and original independent variable to create an interaction variable. Now add this interaction variable to the multiple regression you ran in the last part. Explain which regression model is the “best” using the Adjusted R-Square.

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