Oil Quality and Price

question 141

Essay

Oil Quality and Price
Quality of oil is measured in API gravity degrees--the higher the degrees API,the higher the quality.The table shown below is produced by an expert in the field who believes that there is a relationship between quality and price per barrel. A partial Minitab output follows: ​ ​ ​
-{Oil Quality and Price Narrative} Draw a scatter diagram of the data.Comment on whether it appears that a linear model might be appropriate to describe the relationship between the quality of oil and price per barrel.

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Definitions:

Interaction Effect

The effect that arises when the impact of one independent variable on the dependent variable depends on the level of another independent variable.

Independent Variable

A variable that is manipulated or changed in an experiment to test its effects on the dependent variable.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

SPSS

A comprehensive system for analyzing data, which stands for Statistical Package for the Social Sciences.