Question

From the following data, fit a straight-line trend through the method of

least square.

Year : 2010 2011 2012 2013 2014 2015 2016 2017

Expenditure (Rs. in ‘000) 43 49 54 62 71 75 78 80

​

Answer 1

Now we know that by expanding the numbers we can write as

➠ 167 = 1 x 100 + 6 x 10 + 7

➠ 716 = 7 x 100 + 1 x 10 + 6

➠ 671 = 6 x 100 + 7 x 10 + 1

Now,

⟾ 167 + 716 + 671  

⟾ 1 x 100 + 6 x 10 + 7 + 7 x 100 + 1 x 10 + 6 + 6 x 100 + 7 x 10 + 1

⟾  (1 + 7 + 6)100 + (6 + 1 + 7)10 + (7 + 6 + 1) 14 x 100 + 14 x 10 + 14

⟾ 14(100 + 10 + 1)

⟾  14 x 111

⟾  14 x 3 x 37 (3 x 37 = 111)

⟾ 42 x 37