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If y=38.85+7.64(x−2020)y = 38.85 + 7.64(x - 2020) is the equation of the straight line trend for the following data:

Year (x)(x)2017201820192020202120222023
Profit (Rs. '000) (y)(y)14302644385664

The trend value for the year 2021 by least square method is:

Solution

✅ Correct Option: 2

The trend line equation is y=38.85+7.64(x−2020)y = 38.85 + 7.64(x - 2020) where xx represents the year.

To find the trend value for year 2021, substitute x=2021x = 2021 into the equation.


y=38.85+7.64(x−2020)y = 38.85 + 7.64(x - 2020)

y=38.85+7.64(2021−2020)y = 38.85 + 7.64(2021 - 2020)

y=38.85+7.64(1)y = 38.85 + 7.64(1)

y=38.85+7.64y = 38.85 + 7.64

y=46.49y = 46.49


Therefore, the trend value for the year 2021 is 46.4946.49 (Rs. '000).

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