Q38. Case Study — 3

When observed over a long period of time, a time series data can predict trends that can forecast increase or decrease or stagnation of a variable under consideration. Such analytical studies can benefit a business for forecasting or prediction of future estimated sales or production.

The table shows the sale of an item in a district during 1996-2001:



Based on the above information, answer the following questions:

(i) Determine the equation of the straight-line trend.
(ii) Tabulate the trend valued of the years and also compute expected sales trend for the your 2002,

OR

(b) Fit a straight-line trend by the method of least squares for the following data:

Solution