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Consider the following data :

Year20122013201420152016
Sales (in ₹ crores)8107912

The equation of the straight line trend by the method of least squares is :

Solution

✅ Correct Option: 3

Using deviations from middle year (2014): u=−2,−1,0,1,2u = -2,-1,0,1,2.

yˉ=46/5=9.2\bar{y} = 46/5 = 9.2, ∑u2=10\sum u^2 = 10, ∑uy=−16−10+0+9+24=7\sum uy = -16-10+0+9+24 = 7.

b=7/10=0.7b = 7/10 = 0.7, so y=9.2+0.7xy = 9.2 + 0.7x.

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