The equation of trend line for five years (2004 - 2008) for the profit of a company is $y_t=150+8 x$. The predicted profit for the year 2011 is:

190

The correct answer is Option (4) → 190

$\text{Years: } 2004 \text{ to } 2008 \Rightarrow \text{origin at } 2006$

$x \text{ values: } 2004=-2,\ 2005=-1,\ 2006=0,\ 2007=1,\ 2008=2$

$\text{For year } 2011,\ x = 2011 - 2006 = 5$

$y = 150 + 8x = 150 + 8(5) = 150 + 40 = 190$

$\text{Predicted profit for 2011} = 190$