Why Do People Sue?
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Week 5 Final Project Data Set Assignment
Darlene Solano
BUS 308: Statistics for Managers
Instructor Esmaail Nikjeh
June 12, 2011
Week 5 Final Project Data Set Assignment
There have been several studies to show that oil price fluctuations have a direct effect on the performance of businesses worldwide. According to those studies, increase in oil prices encourages consumers to stay home more, shop less, and shop online more. This results to lesser vehicles on the road and less traffic. It also, presents an opportunity for a delivery service business. Oil price increase not only expands the business through the expansion in delivery opportunities brought by online shoppers, but also reduces expenses due to potential reduction of travel time. These benefits warrant the need for oil price forecasting. Linear regression of the oil prices from 1982 to 2011 was conducted to come up with a regression model that could be used to predict oil price fluctuations. Though some studies question the accuracy of this method, it helps chart the potential behavior of the oil prices in the coming years. This could help the delivery service business come up with strategies that would alleviate the effects of oil price changes.
This paper will focus on the delivery service business and the statistical analysis on oil and gasoline prices that was conducted, as well as the results of the analysis. Explanations on how the results were gained and the figures the analysis came to show. This writer’s personal thoughts and conclusions will be added at the end in answer to the following questions: What effects will the gas price predictions have on the delivery service business? Are the predicted gas prices accurate? What could occur in the future that would change your linear regression line and therefore your prediction?
Studies have shown that oil price fluctuations have direct effect on the performance of...
Darlene Solano
BUS 308: Statistics for Managers
Instructor Esmaail Nikjeh
June 12, 2011
Week 5 Final Project Data Set Assignment
There have been several studies to show that oil price fluctuations have a direct effect on the performance of businesses worldwide. According to those studies, increase in oil prices encourages consumers to stay home more, shop less, and shop online more. This results to lesser vehicles on the road and less traffic. It also, presents an opportunity for a delivery service business. Oil price increase not only expands the business through the expansion in delivery opportunities brought by online shoppers, but also reduces expenses due to potential reduction of travel time. These benefits warrant the need for oil price forecasting. Linear regression of the oil prices from 1982 to 2011 was conducted to come up with a regression model that could be used to predict oil price fluctuations. Though some studies question the accuracy of this method, it helps chart the potential behavior of the oil prices in the coming years. This could help the delivery service business come up with strategies that would alleviate the effects of oil price changes.
This paper will focus on the delivery service business and the statistical analysis on oil and gasoline prices that was conducted, as well as the results of the analysis. Explanations on how the results were gained and the figures the analysis came to show. This writer’s personal thoughts and conclusions will be added at the end in answer to the following questions: What effects will the gas price predictions have on the delivery service business? Are the predicted gas prices accurate? What could occur in the future that would change your linear regression line and therefore your prediction?
Studies have shown that oil price fluctuations have direct effect on the performance of...