Question

For the given time series, fit a straight line trend of the type y = a + bx by the method of least squares and find the trend value for the year 1995.

Answer 1

X Here X = 2(x-x) \n = 6 X = 1990.5

From (1) 6a + b.0 = 620 

∴ a = 103.33

From (2) a.O + b.70 = 302 

∴ b = 4.31

The fitted straight line trend equation is.

ŷ = 103.33 + 0.057x

Estimation of production for the year 1995 

Here x = 9

ŷ₁₉₉₅ = 103.33 + 4.31(9)= 142.09.