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The following data shows the percentage of urban Indian households who have a high speed 5G internet connection:

Year (x)20202021202220232024
Urban house hold (y)9%18%21%29%38%

If a straight line trend by the method of least square for the above data is y=23+6.9(x2022)y = 23 + 6.9(x - 2022), then the forecast for the year 2025 is:

Solution

Correct Option: 2

The trend equation is y=23+6.9(x2022)y = 23 + 6.9(x - 2022) where:

yy = Percentage of urban households with 5G internet

xx = The year

20222022 = The base year (reference point)

2323 = The average percentage at the base year

6.96.9 = The rate of increase per year


For the forecast year 2025, substitute x=2025x = 2025 into the equation:

y=23+6.9(x2022)y = 23 + 6.9(x - 2022)

y=23+6.9(20252022)y = 23 + 6.9(2025 - 2022)

y=23+6.9(3)y = 23 + 6.9(3)

y=23+20.7y = 23 + 20.7

y=43.7y = 43.7


The forecast for year 2025 is 43.7%43.7\%.

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