Question: 12.69 The Longhaul Transport Company wishes to predict…
Question Answered step-by-step Question: 12.69 The Longhaul Transport Company wishes to predict… Question: 12.69 The Longhaul Transport Company wishes to predict the price of petrol based on international crude oil prices. They record average monthly petrol prices and crude oil prices over a 12-month period. MonthPetrol price / litre)Crude oil price (/barrel)January1.2572February1.3275March1.1569April1.3582May1.2278June1.2680July1.4391August1.2984September1.2882October1.1779November1.5298December1.4391a. Plot a scatter diagram and, assuming a linear relationship, use the least-squares method to calculate the regressioncoefficients, b0 and b1.b. Interpret the meaning of the Y intercept, b0, and the slope, b1, in this problem.c. Use the prediction line developed in (a) to predict the petrol price if crude oil is $75/barrel.d. Calculate the coefficient of determination, r2, and interpret its meaning in this problem.e. Perform a residual analysis and determine the adequacy of the fit of the model.f. At the 0.05 level of significance, is there evidence of a significant linear relationship between petrol and crudeoil prices?g. Construct a 95% confidence interval estimate for the mean petrol price if crude oil is $75/barrel.h. Construct a 95% prediction interval for a particular petrol price if crude oil is $75/barrel.i. Construct a 95% confidence interval estimate of the population slope. Answer only part 2 question. Part 2 Comment on whether you think the errors in Ex 12.69 are autocorrelated, supporting your answer with a sequential residual plot and a Durbin-Watson statistic calculation. Math Statistics and Probability STAT 392 Share QuestionEmailCopy link Comments (0)
