These reveal the benefit of presenting the reader and the researcher with vast information on the historic evolution of the gas prices. The most reputable source in this sense is represented by the Energy Information Administration, which has recently issued a report on the energy outlook. According to the researchers and editors at EIA, the five-year evolution of the gasoline prices in the United States is represented as follows:
Massive price increases in 2007 and the first half of 2008
Dramatic price decrease in the second half of 2008
Slow, but steady increase starting with 2009 and continuing through 2012
The growth in prices commenced in 2009 and expected to continue through 2012 would not lead to the same high gasoline prices as registered in the first half of 2008. The chart below reveals this evolution and projection:
3.3. The P-value analysis
At this level of the analysis, the evolution of the gasoline prices would be assessed with the help of the P-value analysis. The P-value analysis is an analysis which evaluates the statistical importance of a phenomenon and the probability for the phenomenon to materialize (University of the West of England).
The hypothesis at this stage is that within the following six months, at least four months would witness an additional increase in prices. In order to test this hypothesis, the p-value is computed as shown in the formula in the capture below:
This low p-value indicates that the hypothesis issued is extremely likely to materialize as the phenomenon on of price increases is statistically relevant. The finding is also supported by the researchers at the Energy Information Administration, who expect the price of the barrel of...
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now