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Consider the following data:

Year19951996199719981999200020012002
Sales (in crores)6.75.34.36.15.67.95.86.1

By using the method of least squares, the trend value for 1997 is :

Solution

✅ Correct Option: 3

With n=8n=8, use coded values x=−7,−5,…,7x=-7,-5,\dots,7.

Then a=47.88=5.975a=\frac{47.8}{8}=5.975, ∑xy=8.6\sum xy=8.6 and ∑x2=168\sum x^2=168, so b=8.6168≈0.0512b=\frac{8.6}{168}\approx0.0512.

For 19971997, x=−3x=-3, giving trend =5.975−3(0.0512)≈5.82=5.975-3(0.0512)\approx5.82.

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