Consider the following data
The equation of straight line trend by method of least squares is : |
$y = 5 + 25x$ $y = 10 + 15x$ $y = 25 + 5x$ $y = 15 + 5x$ |
$y = 25 + 5x$ |
The correct answer is Option (3) → $y = 25 + 5x$ The general form of the trend line equation is, $y=a+bx$ x = year - 2014 $⇒x=-2,-1,0,1,2$ ∴ The product values (y) remain the same, $y=15,20,25,30,35$ $∑x=(-2)+(-1)+0+1+2=0$ $∑y=15+20+25+30+35=125$ $b=\frac{∑xy}{∑x^2}=\frac{50}{10}=5$ $a=\frac{∑y}{n}=\frac{125}{5}=25$ $y=25+5x$ |