We read your photo as:
Using 1994 as origin, obtain a straight-line trend by the method of least square. Also find the value for year 1997.
ScanSolve AI Answer
Answer
Step-by-step solution
5 stepshere's the solution for question 12.
Question 12: Using 1994 as origin, obtain a straight-line trend by the method of least square. Also find the value for year 1997.
The straight-line trend equation is given by , where is the trend value, is the deviation from the origin, and and are constants.
The normal equations for the method of least squares are:
Given data:
| Years | Income (Y) |
|---|---|
| 1990 | 140 |
| 1991 | 144 |
| 1992 | 160 |
| 1993 | 152 |
| 1994 | 168 |
| 1995 | 176 |
| 1996 | 180 |
Origin = 1994.
Let .
Create a table to calculate , , , and .
Here, .
Substitute the values into the normal equations.
Solve the system of equations for and .
Add equation (1) and equation (2):
Substitute the value of into equation (1):
Write the straight-line trend equation.
Find the value for the year 1997.
For the year 1997, .
Substitute into the trend equation:
The straight-line trend equation is .
The trend value for the year 1997 is .
Try one yourself
A new problem that tests the same skill.
Still stuck on this one?
Ask a follow-up, and the answer starts from this question.
More Economics Questions

Handwritten Step-by-Step Solution
Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.
Try on WhatsApp