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 :
Answer & explanation
Correct answer: option 2
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 $46.49$