Thursday, November 6, 2008
Fun with multiple regression
So I've added datapoints for 10% and 15% ethanol for my gas mileage and average speed. I threw out Alcohol's data, so now I've got data purely for my car. I've redone my regressions for mpg as a function of ethanol % and average speed.
It turns out that ethanol content is a statistically significant factor in mpg.
The next step was to take the regression equation and calculate MPG for various ethanol contents.
Then I looked at what price spread you need to make it worth it to use ethanol.
I found that it was anywhere from 57 to 72 cents. It's a spread that's quite a bit more than you get at Meijer!