Question
Q.
(a) Fit a straight line trend by the method of least squares to the following data and find the trend values. | Year | 2010 | 2012 | 2013 | 2014 | 2015 | 2016 | 2019 | |---|---|---|---|---|---|---|---| | Sales (in lakh ₹) | 65 | 68 | 70 | 72 | 75 | 67 | 73 | OR (b) Find the trend values by taking 4-yearly moving averages for the following data. | Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |---|---|---|---|---|---|---|---|---| | Sales (in thousand ₹) | 108 | 112 | 110 | 120 | 140 | 120 | 100 | 135 |
CBSECBSE Class XII Board 2025Subjective· 5mImportance★★★★★
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →- Normal equations and solve to ; (I flag a small difference from the MS intercept — see note).
- Four-yearly moving totals averages centred averages give the trend.
- Least-squares line : and .
- Centred moving average = average of two successive -yearly moving averages (needed because an even period falls between years).
(a) Straight-line trend by least squares
- Take origin at , so . Build the table:
| Year | ||||
|---|---|---|---|---|
| 2010 | 65 | 16 | ||
| 2012 | 68 | 4 | ||
| 2013 | 70 | 1 | ||
| 2014 | 72 | 0 | 0 | 0 |
| 2015 | 75 | 1 | 1 | 75 |
| 2016 | 67 | 2 | 4 | 134 |
| 2019 | 73 | 5 | 25 | 365 |
| Total |
- With , the normal equations are and .
- Solve: from the first, ; substitute into the second: .
- Then (more precisely ).
- Trend line: . Trend values :
| Year | Trend | |
|---|---|---|
| 2010 | ||
| 2012 | ||
| 2013 | ||
| 2014 | 0 | |
| 2015 | 1 | |
| 2016 | 2 |
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.