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If for the following data:

Year2001200220032004200520062007
Production (in lakh tonnes)30353632374036

Using straight line trend by the method of least squares, the trend value for the year 2009 is :

Solution

✅ Correct Option: 4

Take the origin at 2004 so xx runs from −3-3 to 33.

a=yˉ=2467=35.143a = \bar y = \dfrac{246}{7} = 35.143, and b=∑xy∑x2=2928=1.036b = \dfrac{\sum xy}{\sum x^2} = \dfrac{29}{28} = 1.036.

For 2009, x=5x = 5: trend =35.143+5(1.036)=40.32= 35.143 + 5(1.036) = 40.32.

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