The following data shows the percentage of rural and urban Indian households who have a high speed internet connection.
Year (x) Rural Household (y%) Urban Household (y%) 2020 2 6 2021 3 7 2022 3 9 2023 4 15 2024 5 20
Based on the above data, which of the following statements are correct?
(A) A straight line trend by the method of the least squares for rural Indians is = 3.4 + 0.7 (x - 2022)
(B) A straight line trend by the method of the least squares for urban Indians is = 11.4 + 4.3 (x - 2022)
(C) The forecast for the year 2025 for urban group using the trend equation is 22.2 %.
(D) The forecast for the year 2025 for rural group using the trend equation is 5.5 %.
Choose the correct answer from the options given below:
The following data shows the percentage of rural and urban Indian households who have a high speed internet connection.
| Year (x) | Rural Household (y%) | Urban Household (y%) |
|---|---|---|
| 2020 | 2 | 6 |
| 2021 | 3 | 7 |
| 2022 | 3 | 9 |
| 2023 | 4 | 15 |
| 2024 | 5 | 20 |
Based on the above data, which of the following statements are correct?
(A) A straight line trend by the method of the least squares for rural Indians is = 3.4 + 0.7 (x - 2022)
(B) A straight line trend by the method of the least squares for urban Indians is = 11.4 + 4.3 (x - 2022)
(C) The forecast for the year 2025 for urban group using the trend equation is 22.2 %.
(D) The forecast for the year 2025 for rural group using the trend equation is 5.5 %.
Choose the correct answer from the options given below:
Solution
In the Method of Least Squares, the trend line equation is:
where , ,
Since there are 5 years (odd), the middle year 2022 is the origin, so .
This makes , which simplifies the calculations.
| Year | Rural () | Urban () | ||||
|---|---|---|---|---|---|---|
| 2020 | −2 | 2 | 6 | 4 | −4 | −12 |
| 2021 | −1 | 3 | 7 | 1 | −3 | −7 |
| 2022 | 0 | 3 | 9 | 0 | 0 | 0 |
| 2023 | 1 | 4 | 15 | 1 | 4 | 15 |
| 2024 | 2 | 5 | 20 | 4 | 10 | 40 |
| Total | 0 | 17 | 57 | 10 | 7 | 36 |
Statement (A) — Rural Trend Line:
Statement (A) is correct. ✅
Statement (B) — Urban Trend Line:
Statement (B) claims , but the correct value is .
Statement (B) is incorrect. ❌
Statement (C) — Urban Forecast for 2025:
Statement (C) is correct. ✅
Statement (D) — Rural Forecast for 2025:
Statement (D) is correct. ✅
Statements (A), (C) and (D) are correct.
The correct answer is Option 2.
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