Oil Consumption vs.

Per Capita Income of Countries Around The World

I chose to use oil consumption and per capita income for my data because Im about to be a licensed driver, and I was wondering how much oil other countries consumed. After a while, I decided to choose per capita income for my data aswell, because I saw a correlation between the two in the United States. I already knew that the United States has a high per capita income and oil consumption rate, but I had no idea how it compared to other countries, and whether or not there was a correlation between per capita income and oil consumption to be found in other countries around the world, as opposed to just the United States. As a resident of the United States, I knew that my household consumes a lot of gas and has a high income, in comparison to other places around the world. My data analysis allowed me to see whether or not there was a correlation, like the one found in my household and in the United States, on a global level. My data analysis answers my question on correlation, and youll be surprised to find what my results ended up being. Scatterplot of Data: Oil consumption vs Per Capita Income for Various Countries
20,000,000 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

The linear regression equation that models my data and this scatterplot is y= 28.533x + 2137411.535. The y-intercept is where the oil consumption is 2137411.535 bbl on the y-axis. This means that when x in the linear regression equation is equal to zero, y will be equal to 2137411.535. The slope of this linear

regression equation shows that every dollar increase in Per Capita Income, the oil consumption goes up 28.533 barrels.

The r-value (correlation coefficient) for this data and scatterplot is r = 0.095.The r-value is close to zero as opposed to 1 or -1 because the correlation of the points on the scatterplot is fairly random. The points are spread out and dont show any positive or negative trend. If the points were closer together in a positive or negative manner, creating a more visible slope, then my correlation coefficient would be closer to 1 or -1. Using the linear regression equation that models my data, I have predicted three values outside of the data set I originally obtained. y= 28.533x + 2137411.535 (this is the linear regression equation Im using) In these three values that I have predicted, I simply substituted the x for three different per capita incomes (US$). 1) y= 28.533(25,000) + 2137411.535 = 2850736.535 2) y= 28.533(44,000)+ 2137411.535 = 3392863.535 3) y= 28.533(10,000) + 2137411.535 = 2422741.535 A career that would use this type of analysis on the correlation between oil consumption and per capita income in various countries around the world is economics. An economist would look at this data on various countries through out the world, and try to predict where each country will be, in terms of the correlation between per capita income and oil consumption, in the up and coming years. The economist would use trends and patterns along with equations to try and predict how things will turn out. Economics helps people all around the world know what to expect, and the trend in which their country is going, whether it be the correlation between per capita income and oil consumption or another important comarison. As you saw in the scatterplot portraying my data and the correlation coefficient of this data (r = 0.095), there is very little correlation between per capita income and oil consumption throught the world. This is quite apparent in the scatterplot because all the data points are quite random. When talking about the correlation of per capita income and oil consumption on a global scale, its not presumable or safe to say that a country has a high per capita income because it has a high oil consumption rate or vice versa.

Works Cited "GDP - per Capita (PPP) - Country Comparison." Index Mundi Country Facts. Web. 26 Sept. 2011. <http://www.indexmundi.com/g/r.aspx?v=67>. "Population - Country Comparison." Index Mundi - Country Facts. Web. 26 Sept. 2011. <http://www.indexmundi.com/g/r.aspx?t=0>.