Essay Sample on Airline Fuel Cost and Consumption for Domestic U.S Carriers

The data under analysis is obtained from the Bureau of Transportation Statistics source. The source offers data ranging from air transport, road transport, railway transport, and water transport. The particular data set under review is the Air Travel Consumer report. It provides details about the fuel consumed and the costs that the airlines incur each month for domestic and international flights. I am interested in understanding the total monthly consumption costs incurred on domestic freights from December 2017 to May 2020. The fuel has been fluctuating, and so are the travel routes. I want to learn the difference between the consumption costs before the COVID-19 pandemic and during the first five months of the pandemic (Csereklyei and Stern 20).

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Hypothesis

• Null Hypothesis: Consumption cost per gallon does not increase with the number of gallons consumed.
• Alternative hypothesis: Consumption cost per gallon increases with an increase in the number of gallons consumed.

There are three variables: consumption in a million gallons, the total cost in a million dollars for all consumed gallons, and the cost per gallon in dollars. Gallons consumed and the total cost incurred is used to determine the cost per gallon. Therefore, the response(Y) variable is the consumption cost per gallon in dollars, and the predictor variables are total gallons consumed(X1), and total consumption cost millions of gallons consumed in dollars(X2) (Ferraty, Keilegom, and Vieu 10-18)

• 2. The two scatter plots have a similar pattern. More of the plot marks are on the top right side of the scatter plots. These points indicate the prices per gallon are high, and so is the volume of gallons consumed (Seber and Lee,10). The patterns are similar to the expectations of the hypothesis.
• 3. Other variables that may be useful in predicting Y are the speed of a flying airplane and distance covered. The two factors will influence the amount that an airplane consumes per flight. Therefore, it will affect the consumption cost per gallon used to fly a certain distance.
• 4. Check the histograms on the excel sheet.
• 5. The data set presented a normal distribution that is skewed to the right.
• 6. Each of the scatter plots has a positive correlation pattern. In other words, an increase in the predictor variable results in a rise in the response variable. Therefore, the hypothesis is satisfied.

Work Cited

Csereklyei, Zsuzsanna, and David I. Stern. "Flying more efficiently: joint impacts of fuel prices, capital costs, and fleet size on airline fleet fuel economy." Ecological Economics 175 (2020): 106714.

Ferraty, Frédéric, Ingrid Van Keilegom, and Philippe Vieu. "Regression when both response and predictor are functions." Journal of Multivariate Analysis 109 (2012): 10-28.

Seber, George AF, and Alan J. Lee. Linear regression analysis. Vol. 329. John Wiley & Sons, 2012.