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Using the semi-average method, determine the trend line equation for the following sales data (in tonnes) for the year 1979: Jan: 280, Feb: 300, Mar: 280, Apr: 280, May: 270, Jun: 240, Jul: 230, Aug:
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4 stepsDivide the data into two equal halves.
There are 12 data points (months from January to December 1979).
First half (Months 1-6): 280, 300, 280, 280, 270, 240
Second half (Months 7-12): 230, 230, 220, 200, 210, 200Calculate the semi-average for each half.
First semi-average ():
This average corresponds to the mid-point of the first half. The months are 1, 2, 3, 4, 5, 6. The mid-point is between month 3 and month 4, which is .
Second semi-average ():
This average corresponds to the mid-point of the second half. The months are 7, 8, 9, 10, 11, 12. The mid-point is between month 9 and month 10, which is .
Determine the trend line equation .
We have two points and .
Calculate the slope ():
Calculate the y-intercept () using one of the points, for example :
Write the trend line equation.
The trend line equation is .
where is the sales in tonnes and is the month number (e.g., for January, for February, etc.).
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