The yearly output (in thousand units) of a workshop is given below.
| Year | 2021 | 2022 | 2023 | 2024 |
| Output (in thousand units) | 20 | 23 | 27 | 30 |
A straight-line trend \(y = a + bX\) is fitted to these data by the method of least squares, taking X = year − 2022.5. The trend value of the output (in thousand units) for the year 2026 is
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 36.9
With X = year − 2022.5 the four years have
X = −1.5, −0.5, 0.5, 1.5
so \(\sum X = 0\) and
\( \displaystyle a = \frac{\sum y}{n}, \quad b = \frac{\sum Xy}{\sum X^2} \)
The sums are
\(\sum y = 20 + 23 + 27 + 30 = 100\)
\(\sum X^2 = 2.25 + 0.25 + 0.25 + 2.25 = 5\)
\(\sum Xy = -30 - 11.5 + 13.5 + 45 = 17\)
So
\( \displaystyle a = \frac{100}{4} = 25 \)
\( \displaystyle b = \frac{17}{5} = 3.4 \)
Here X goes up by 1 each year, so b = 3.4 is the yearly rise. For 2026, X = 2026 − 2022.5 = 3.5:
\(y = 25 + 3.4 \times 3.5 = 25 + 11.9 = 36.9\)
Why the other options are incorrect
Option (1) 33.5 — Incorrect. This is the trend value for 2025 (X = 2.5).
Option (3) 48.8 — Incorrect. This puts X = 7, the value for 2026 when X is counted in half-years; with X = year − 2022.5 the value is 3.5.
Option (4) 40.3 — Incorrect. This is the trend value for 2027 (X = 4.5).