# Question

In Exercise 30 we looked at the weekly average retail price (cents per gallon) of regular gas nationwide from 2011 through June 2013. Here’s the time series plot again:

a) What components can you see in this plot?

Here’s an AR(14) model fit to these data.

Here’s a time series plot of the model.

b) Does this model show that there is a (possibly unsuspected) 14-week seasonal cycle in gas prices? Explain.

c) Would you use this model to predict future gas prices? Explain.

a) What components can you see in this plot?

Here’s an AR(14) model fit to these data.

Here’s a time series plot of the model.

b) Does this model show that there is a (possibly unsuspected) 14-week seasonal cycle in gas prices? Explain.

c) Would you use this model to predict future gas prices? Explain.

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