Gas has always been an indispensable commodity for every household in an economy, it forms part of the fabric of the society because of its utility. undoubtedly, without gas we might as well return to the antediluvian.
Since the turn of 2021 it was perceived to be a year of optimism, the citizens of Nigeria would think new year will breathe a fresh air into the economy but we couldn’t be more wrong, The level of inflation had been at an all time high. Gas prices hasn’t been left out too. The visualization below shows the gas prices for 2021 from January to April.
FIG 1.0 and 1.1 shows the consistent rise in price of gas of 5kg and 12kg over the January to April.
5kg graph shows a tenacious increase over the 4 months FIG 1.0
12kg graph was particularly interesting there was a sharp increase from January to February ,12kg price reduces in march but increased in April. FIG 1.1
FIG 1.2 is a scatter plot showing the trend of gas price 5kg and 12kg over January to April at there various prices
USING R STUDIO we determined the Correlation between two variables (x=12kg and y=5kg ).
Pearson’s product-moment correlation
data: GAS_PRICES_X$`5kg` and GAS_PRICES_X$`12kg`
t = 4.0677, df = 2, p-value = 0.05546
alternative hypothesis: true correlation is not equal to 0
95 percent confidence interval:
From the analysis above we are able to determine that there is a strong positive relationship between (x=12kg and y=5kg ) Prices.
USING R STUDIO we determined the regression model as well as predictive patter of the two variables (x=12kg and y=5kg ).
lm(formula = GAS_PRICES_X$`5kg` ~ GAS_PRICES_X$`12kg`)
Bo = 137.0304
B1 = 0.5079
y = 137.0304 + 0.5079x
Thus if y = 2,073.41 then
2073.41 = 137.0304 + 0.5079x
NOTE: If x is 0 that is if the 12kg price is 0 then y 5kg is 137.0304 naira