Assuming the same rate of change continues for the following data:
Year (x) 2019 2020 2021 2022 2023 Profit(in Percentage) (y) 38 40 65 72 69
The equation of the straight line trend using the least square method is:
Assuming the same rate of change continues for the following data:
| Year (x) | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Profit(in Percentage) (y) | 38 | 40 | 65 | 72 | 69 |
The equation of the straight line trend using the least square method is:
Solution
✅ Correct Option: 2
The equation needs to be in the form where is the slope and is the y-intercept.
Given that the slope is , we need to find the y-intercept .
| Year (x) | Profit (y) |
|---|---|
| 2019 | 38 |
| 2020 | 40 |
| 2021 | 65 |
| 2022 | 72 |
| 2023 | 69 |
Number of data points:
The least squares line passes through the point .
Using the formula :
The equation of the straight line trend is:
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