Consider the following data:
|
Year (x) |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
Profit (₹)(y) |
114 |
130 |
126 |
144 |
138 |
156 |
164 |
The equation of straight line trend by using least square method is, $y =138.86+7.64 (x-2007)$, then the trend values for the year 2004 is
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 115.94 **
Trend equation: $y = 138.86 + 7.64(x - 2007)$
For year 2004: $x = 2004$
$y = 138.86 + 7.64(2004 - 2007)$
$y = 138.86 + 7.64(-3)$
$y = 138.86 - 22.92$
$y = 115.94$
The trend value for the year 2004 is 115.94.