Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

If $y = 38.85 +7.64(x-2020)$ is the equation of the straight line trend for the following data:

Year (x)

2017

2018

2019

2020

2021

2022

2023

Profit (Rs. '000) (y)

14

30

26

44

38

56

64

The trend value for the year 2021 by least square method is :

Options:

45.6

46.49

38.9

42.6

Correct Answer:

46.49

Explanation:

The correct answer is Option (2) → 46.49

Given trend line

$y=38.85+7.64(x-2020)$

For year $2021$,

$x-2020=1$

So

$y=38.85+7.64(1)$

$=38.85+7.64$

$=46.49$

Trend value for year 2021 is $46.49$