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Consider the following data:

Year (X)2004200520062007200820092010
Profit (₹) (y)114130126144138156164

The equation of straight line trend by using least square method is y=138.86+7.64(x−2007)y = 138.86 + 7.64 (x - 2007), then the trend values for the year 2004 is

Solution

✅ Correct Option: 1

The trend line equation is y=138.86+7.64(x−2007)y = 138.86 + 7.64(x - 2007) where xx represents the year.

For the year 2004, x=2004x = 2004.


Substituting x=2004x = 2004 into the equation:

y=138.86+7.64(2004−2007)y = 138.86 + 7.64(2004 - 2007)

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

y=138.86+(−22.92)y = 138.86 + (-22.92)

y=138.86−22.92y = 138.86 - 22.92

y=115.94y = 115.94


Therefore, the trend value for year 2004 is ₹115.94.

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