Question

a. Create a line chart for these time series data. What interpretations can you make about the average price per gallon of conventional regular gasoline over these 36 months?

b. Fit a linear trendline to the data. What does the trendline indicate about the price of gasoline over these 36 months?

Month	Price ($)
1	2.27
2	2.63
3	2.53
4	2.62
5	2.55
6	2.55
7	2.65
8	2.61
9	2.72
10	2.64
11	2.77
12	2.85
13	2.84
14	2.73
15	2.73
16	2.73
17	2.71
18	2.80
19	2.86
20	2.99
21	3.10
22	3.21
23	3.56
24	3.80
25	3.91
26	3.68
27	3.65
28	3.64
29	3.61
30	3.45
31	3.38
32	3.27
33	3.38
34	3.58
35	3.85
36	3.90

Answer 1

a. Create a line chart for these time series data. What interpretations can you make about the average price per gallon of conventional regular gasoline over these 36 months?

Trend model to interpret the average price per gallon over these 36 months

The trend is between price and average price. The line chart is clearly shows the trend of the actual price and the average price.

Average price is here calculated as forecast value.

b. Fit a linear trendline to the data. What does the trendline indicate about the price of gasoline over these 36 months?

The trendline indicates positive strength and positive linear relationship between Month and price

The correlation coefficient between the variable is 0.89(strong)