[See Solution] Week 1: Inference For Regression Statistics in The News Many business situations require decision makers to consider relationships between

Question:

Week 1: Inference For Regression

Statistics in The News

Many business situations require decision makers to consider relationships between two quantitative variables. How do wages increase with length of service? How accurately can we predict a house’s selling price by looking at its size? How is a company’s reputation related to its profitability?

In this assignment, you will watch a video about the effect of oil prices on the economy and write a summary of how you think one can analyze the impact of the oil prices on the renewable energy consumption as well.

This exercise will help you state the economic or business question in statistical terms and select the appropriate technique.

Objectives

The purpose of this assignment is to:

 Identify business situations that involve predicting a numerical variable using an explanatory variable.

 Identify appropriate statistical techniques.

 Apply statistical methods in the real world.

Instructions

Steps

 Review the required readings for this week.

 Watch the following video from CBS News.com: Gas Prices Reverberate Through Economy .

o Link to 2 minute video: http://www.cbsnews.com/stories/2008/03/05/eveningnews/main3912693.shtml

 Compose a one- to two-1-2 paragraph summary based on the assignment below. Please, limit your summary to 300 words.

For this activity, you will watch a video from CBS News.com: Gas Prices Reverberate Through Economy . In light of your reading for this week’s content and your reflection upon the video and the assigned readings, write a summary of how you think one can analyze the impact of oil prices on renewable energy consumption:
o Describe your approach/techniques:
o What variables would you use? What would they measure? How would you use these variables to examine the effect of oil prices on renewable energy consumption?
o Defend your choice of variables and technique:
 Why are your selected techniques relevant?
 What are the limitations of your chosen techniques?
o Your answer to this question must be succinct, yet thorough and convincing to readers who are unfamiliar with statistics.

Tips For Success

 Make sure that you carefully read the textbook sections about examining relationships and quantifying associations between variables. You are not asked to make any calculations at this point. You will be asked to do them in the next activity.

 Do not spend a lot of time perfecting your response for the purpose of this assignment, but make sure your response is clear and coherent.

 Remember that you are not being graded on whether you are "right" or "wrong"—in fact, there is not necessarily a right or wrong answer. Your instructor is looking for your perspective, informed by the readings and discussions and your professional/personal experiences. Remember, if you have a different view than one of your peers, criticize the idea, not the person. The goal is to develop an engaging, vigorous, and respectful dialogue.