Based on the following data, answer the question where all symbols have their usual meaning.
|
Year (t) |
Profit (in thousand of Rs.) (y) |
| 2001 | 5 |
| 2002 | 6 |
| 2003 | 6 |
| 2004 | 8 |
| 5005 | 5 |
If $y_t=a+b(t-2003)$ is the trend line equation then a is equal to :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 6
The trend line equation is,
$y_t=a+b(t-2003)$
$a=\bar y=\frac{∑y}{n}=\frac{5+6+6+8+5}{5}=\frac{30}{5}=6$