In the equation of trend line yt = a + bx, a and b represent:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) - the mean of y and the slope of trend line respectively
$y_t = a + bx$
$a \;\Rightarrow\; \text{intercept, which represents mean of } y \text{ (when } x=0 \text{ in coded data)}$
$b \;\Rightarrow\; \text{slope of the trend line}$
The correct answer is: the mean of y and the slope of trend line respectively.