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Let y=138.86+7.64(x−2021)y = 138.86 + 7.64(x - 2021) be a straight line of best fit by using least square method to the following data:

Year(x)2018201920202021202220232024
Profit(y) (in Rs. '000)114130126144138156164

Then the trend value for the year 2024 is:

Solution

✅ Correct Option: 3

The trend line equation is given by:

y=138.86+7.64(x−2021)y = 138.86 + 7.64(x - 2021)

where xx represents the year and yy represents the profit (in Rs. '000).

The trend value is the predicted profit from the equation, not the actual profit from the data table.


For year 2024, substitute x=2024x = 2024 into the equation:

y=138.86+7.64(2024−2021)y = 138.86 + 7.64(2024 - 2021)

y=138.86+7.64(3)y = 138.86 + 7.64(3)

y=138.86+22.92y = 138.86 + 22.92

y=161.78y = 161.78


Therefore, the trend value for year 2024 is 161.78161.78 (in Rs. '000).

Note: The actual profit shown in the table for 2024 is 164, but the trend value of 161.78 is what the regression line predicts.

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