Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Index Numbers and Time Based Data

Question:

Consider the following data :

Year 2012 2013 2014 2015 2016
Sales (in ₹ crores ) 9 18 21 29 38

A straight line trend by the method of least square is :

Options:

$y= 21.5 + 5.45 x$

$y =6.9+23x$

$y=24+7.3x$

$y=23+6.9x$

Correct Answer:

$y=23+6.9x$

Explanation:

The correct answer is Option (4) → $y=23+6.9x$

To find the straight-line trend,

$y=a+bx$

$∑y=9+18+21+29+36=115$

$∑x=-2+(-1)+(0)+(1)+(2)=0$

$∑xy=-18-18+0+29+76=69$

$∑x^2=(4)+(1)+(0)+(1)+(4)=10$

$a=\frac{∑y}{n}=\frac{115}{5}=23$

$b=\frac{∑xy}{∑x^2}=\frac{69}{10}=6.9$

$∴y=23+6.9x$