Business 308 Statistics for Managers
Professor Edward Kaplan
February 4, 2013
In today’s society, gas and oil prices continue to rise which has a direct impact not only on one’s household but also in the delivery service industry. As prices on gas rise, the impact is felt on the consumer as delivery services increase their prices. While many Americans try to conserve their savings, this places limits on spending. Due to the advancement in technology, online shopping has increased which saves many consumers money on driving to and from stores. However, with the increase on gas prices, many delivery services have stopped their free shipping in order to compensate on the rising gas prices. This can either benefit the company or it can be a disadvantage. Due to the demand and increase of online shoppers, forecasting oil and gas prices are necessary. Organizations in this type of industry can research and forecast oil and gas prices by creating projected reports for the next ten years. By using a scatterplot and linear regression line, companies can predict the increase of gas prices thus come up with various strategies to stay competitive. The most significant factor in the production of gas is crude oil. The prices in gas fall and rise due to the cost of crude which is established by supply and demand on the global commodities market. During the recession in 2008 and 2009, the gas prices went down because of less demand. However, as the economy progresses, the demand is rising. In the meantime with conflict in the Middle East and North Africa, the supply is at risk. With both the rising demand and the risk of reduced supply, gas prices are increasing. Crude oil comprises of more than 65 % of what Americans pay at the pump. In addition, gas prices are impacted by costs of refining, distribution, government and marketing taxes (API, 2013). This information is especially important to those who...