Question

Fit a straight line trend to the following data and estimate the expected profit for the
year 2021. What is the average annual change in profit?
Year 2015 2016 2017 2018 2019 2020
Sales (in ‘000 of Rs.) 150 170 200 210 230 240
Also distinguish between ‘Additive Model’ and ‘Multiplicative Model’ in the analysis
of time series

Answer 1

Answer:

Fit a straight line trend to the following data and estimate the expected profit for the

year 2021. What is the average annual change in profit?

Year 2015 2016 2017 2018 2019 2020

Sales (in ‘000 of Rs.) 150 170 200 210 230 240

Also distinguish between ‘Additive Model’ and ‘Multiplicative Model’ in the analysis

of time series