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The Relationship Between Gasoline Sales and Vehicles Miles of Travel

In: Business and Management

Submitted By rufka
Words 1581
Pages 7
The Relationship Between Gasoline Sales and Vehicles Miles of Travel

Rufat Rahmanov

Quantitative Research Methods (EC 315)
Professor Kathleen Vinlove
October 7, 2008
Park University

Purpose Statement and Model
I have chosen this particular model for research paper because I am a business major. At the present time world economy faces the situation of the high petroleum prices. Thus, the understanding of what factors and how they affect on the increase or decrease of the sales of the gasoline is considered to be very relevant.
The dependent variable “Annual prime supplier sales volumes of regular gasoline per capita” is determined by the following independent variables “Annual vehicle miles of travel per capita”, “Personal income per capita” and “Retail price of regular gasoline”.
The model is:
Yi=β0+ β1X1i+ β2X2i+β3X3i+ ei

Definition of Variables and Data Description
Y: As it was already stated, my dependent variable is annual prime supplier sales volumes of regular gasoline per capita. Prime supplier is a firm that produces, imports, or transports selected petroleum products across State boundaries and local marketing areas, and sells the product to local distributors, local retailers, or end users. Regular Gasoline is gasoline having an antiknock index (average of the research octane rating and the motor octane number) greater than or equal to 85 and less than 88. Per capita sales data was obtained by dividing the total sales of regular gasoline by total population of the area. Unit of measurement of this variable is gallons per day. The required data information was derived from the following government agencies. Energy Information Administration provided the Prices, Sales Volumes & Stocks by State table which showed Prime Supplier sales volumes of regular gasoline. For population data I used US Census Bureau’s Table 12, Resident...

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