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For the following data:

Year (xix_i)2004200520062007200820092010
Sales (in ₹' 000) (yiy_i)26264442108120166

The equation of the straight line trend is y=a+b(xi−2007)y = a + b(x_i - 2007), then the trend value for the year 2011 is

Solution

✅ Correct Option: 2

Let u=xi−2007u=x_i-2007, so uu runs from −3-3 to 33 with ∑u=0\sum u=0 and ∑u2=28\sum u^2=28. Also ∑y=532\sum y=532 and ∑uy=672\sum uy=672. Then a=5327=76a=\frac{532}{7}=76 and b=67228=24b=\frac{672}{28}=24, giving y=76+24uy=76+24u. For 2011, u=4u=4, so y=76+96=172y=76+96=172.

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