Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

If $(t_1, y_1), (t_2,y_2)......... (t_n, y_n)$ denote the time series and $y_t$ are the trend values of the variables y, then

Options:

$\sum\limits_{i=1}^{n}(y_i-y_t) = 0$

$\sum\limits_{i=1}^{n}(y_i-y_t) = 1$

$\sum\limits_{i=1}^{n}(y_i-y_t) = ∞$

$\sum\limits_{i=1}^{n}(y_i-y_t) ≠ 0$

Correct Answer:

$\sum\limits_{i=1}^{n}(y_i-y_t) = 0$

Explanation:

The correct answer is Option (1) → $\sum\limits_{i=1}^{n}(y_i-y_t) = 0$ **

For a time series $(t_1,y_1),(t_2,y_2),\ldots,(t_n,y_n)$ with trend values $y_t$, the deviations from trend satisfy

$\displaystyle \sum_{i=1}^{n}(y_i - y_t) = 0$.

Correct option: $\displaystyle \sum_{i=1}^{n}(y_i - y_t)=0$