Let $y = 138.86 + 7.64(x-2021)$ be a straight line of best fit by using least square method to the following data:
|
Year(x) |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Profit(y) (in Rs. '000) |
114 |
130 |
126 |
144 |
138 |
156 |
164 |
Then the trend value for the year 2024 is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 161.78
Given trend line: $y = 138.86 + 7.64(x - 2021)$
For the year 2024, $x = 2024$
Substitute $x = 2024$:
$y = 138.86 + 7.64(2024 - 2021)$
$y = 138.86 + 7.64 \times 3$
$y = 138.86 + 22.92$
$y = 161.78$
Therefore, the trend value for the year 2024 is Rs. 161.78 thousand