| Year \((x)\) | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
| Sales (in lakh Rs.) \((y)\) | 65 | 68 | 70 | 72 | 75 | 67 | 73 |
If \(y = 70 + 0.964(x - 2014)\) be a straight line trend fitted by the method of the least squares to the above data, then the trend value for the year 2015 is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 70.96
The trend value of a year is read from the fitted trend line, not from the data table. Putting x = 2015 in the given line:
\(x - 2014 = 1\)
\(y = 70 + 0.964(1) = 70.964\)
So the trend value for 2015 is 70.964, that is, about 70.96 lakh rupees. The actual sales of 2015, 75, is a different quantity.