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महाराष्ट्र राज्य शिक्षण मंडळएचएससी वाणिज्य (इंग्रजी माध्यम) इयत्ता १२ वी

Solve the following problem : Fit a trend line to data in Problem 16 by the method of least squares.

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प्रश्न

Solve the following problem :

Fit a trend line to data in Problem 16 by the method of least squares.

बेरीज
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उत्तर

In the given problem, n = 7 (odd), middle t – value is 1995, h = 5

u = `"t - middle value"/"h" = ("t" - 1995)/(1)` 

We obtain the following table.

Year
t
Infant mortality rate 
yt
u = `("t" - 1995)/(5)` u2 uyt Trend Value
1980 10 –3 9 –30 8.9999
1985 7 –2 4 –14 7.4285
1990 5 –1 1 –5 5.8571
1995 4 0 0 0 4.2857
2000 3 1 1 3 2.7143
2005 1 2 4 2 1.1429
2010 0 3 9 0 –0.4285
Total 30 0 28 –44  

From the table, n = 7, `sumy_"t" = 10, sumu = 0, sumu^2 = 28,sumuy_"t" = – 44`

The two normal equations are: `sumy_"t" = "na"' + "b"' sumu  "and" sumuy_"t", = a'sumu + b'sumu^2`

∴ 30 = 7a' + b'(0)               ...(i)   and
– 44 = a'(0) + b'(28)           ...(ii)

From (i), a' = `(30)/(7)` = 4.2857

From (ii), b' = `(-44)/(28)` = 1.5714
∴  The equation of the trend line is yt = a' + b'u
i.e., yt = 4.2857 – 1.5714 u, where u = `("t" - 1995)/(5)`.

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Measurement of Secular Trend
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पाठ 4: Time Series - Miscellaneous Exercise 4 [पृष्ठ ७०]

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बालभारती Mathematics and Statistics 2 (Commerce) [English] Standard 12 Maharashtra State Board
पाठ 4 Time Series
Miscellaneous Exercise 4 | Q 4.17 | पृष्ठ ७०

संबंधित प्रश्‍न

Obtain the trend values for the above data using 3-yearly moving averages.


The following table shows the production of gasoline in U.S.A. for the years 1962 to 1976.

Year 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
Production
(Million Barrels)
0 0 1 1 2 3 4 5 6 7 8 9 8 9 10

i. Obtain trend values for the above data using 5-yearly moving averages.
ii. Plot the original time series and trend values obtained above on the same graph.


Choose the correct alternative :

We can use regression line for past data to forecast future data. We then use the line which_______.


Choose the correct alternative :

Which of the following is a major problem for forecasting, especially when using the method of least squares?


The simplest method of measuring trend of time series is ______.


Fill in the blank :

The method of measuring trend of time series using only averages is _______


State whether the following is True or False :

Least squares method of finding trend is very simple and does not involve any calculations.


State whether the following is True or False :

All the three methods of measuring trend will always give the same results.


Solve the following problem :

Obtain trend values for the following data using 5-yearly moving averages.

Year 1974 1975 1976 1977 1978 1979 1980 1981 1982
Production 0 4 9 9 8 5 4 8 10

Solve the following problem :

Following table shows the amount of sugar production (in lac tonnes) for the years 1971 to 1982.

Year 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982
Production 1 0 1 2 3 2 3 6 5 1 4 10

Fit a trend line to the above data by graphical method.


Solve the following problem :

Fit a trend line to data in Problem 4 by the method of least squares.


Solve the following problem :

Obtain trend values for the data in Problem 7 using 4-yearly moving averages.


Following data shows the number of boxes of cereal sold in years 1977 to 1984.

Year 1977 1978 1979 1980 1981 1982 1983 1984
No. of boxes in ten thousand 1 0 3 8 10 4 5 8

Fit a trend line to the above data by graphical method.


Solve the following problem :

Obtain trend values for data in Problem 13 using 4-yearly moving averages.


Solve the following problem :

Following tables shows the wheat yield (‘000 tonnes) in India for years 1959 to 1968.

Year 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968
Yield 0 1 2 3 1 0 4 1 2 10

Fit a trend line to the above data by the method of least squares.


Choose the correct alternative:

Moving averages are useful in identifying ______.


The method of measuring trend of time series using only averages is ______


State whether the following statement is True or False: 

Moving average method of finding trend is very complicated and involves several calculations


State whether the following statement is True or False:

Least squares method of finding trend is very simple and does not involve any calculations


The following table shows the production of gasoline in U.S.A. for the years 1962 to 1976.

Year 1962 1963 1964 1965 1966 1967 1968 1969
Production
(million barrels)
0 0 1 1 2 3 4 5
Year 1970 1971 1972 1973 1974 1975 1976  
Production
(million barrels)
6 7 8 9 8 9 10  
  1. Obtain trend values for the above data using 5-yearly moving averages.
  2. Plot the original time series and trend values obtained above on the same graph.

Following table shows the all India infant mortality rates (per ‘000) for years 1980 to 2010

Year 1980 1985 1990 1995
IMR 10 7 5 4
Year 2000 2005 2010  
IMR 3 1 0  

Fit a trend line by the method of least squares

Solution: Let us fit equation of trend line for above data.

Let the equation of trend line be y = a + bx   .....(i)

Here n = 7(odd), middle year is `square` and h = 5

Year IMR (y) x x2 x.y
1980 10 – 3 9 – 30
1985 7 – 2 4 – 14
1990 5 – 1 1 – 5
1995 4 0 0 0
2000 3 1 1 3
2005 1 2 4 2
2010 0 3 9 0
Total 30 0 28 – 44

The normal equations are

Σy = na + bΣx

As, Σx = 0, a = `square`

Also, Σxy = aΣx + bΣx2

As, Σx = 0, b =`square`

∴ The equation of trend line is y = `square`


Obtain trend values for data, using 3-yearly moving averages
Solution:

Year IMR 3 yearly
moving total
3-yearly moving
average

(trend value)
1980 10
1985 7 `square` 7.33
1990 5 16 `square`
1995 4 12 4
2000 3 8 `square`
2005 1 `square` 1.33
2010 0

The complicated but efficient method of measuring trend of time series is ______.


Fit a trend line to the following data by the method of least square :

Year 1980 1985 1990 1995 2000 2005 2010
IMR 10 7 5 4 3 1 0

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