English

The following table gives the production of steel (in millions of tons) for years 1976 to 1986. Year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 - Mathematics and Statistics

Advertisements
Advertisements

Question

The following table gives the production of steel (in millions of tons) for years 1976 to 1986.

Year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986
Production 0 4 4 2 6 8 5 9 4 10 10

Obtain the trend value for the year 1990

Chart
Sum
Advertisements

Solution

In the given problem, n = 11 (odd), middle t- values is 1981, h = 1

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

= `("t" - 1981)/1`

= t – 1981

We obtain the following table:

Year 

t

Production

yt

u = t − 1981 u2 uyt Trend Value
1976 0 − 5 25 0 1.6819
1977 4 − 4 16 − 16 2.4728
1978 4 − 3 9 − 12 3.2637
1979 2 − 2 4 − 4 4.0546
1980 6 − 1 1 − 6 4.8455
1981 8 0 0 0 5.6364
1982 5 1 1 5 6.4273
1983 9 2 4 18 7.2182
1984 4 3 9 12 8.0091
1985 10 4 16 40 8.8
1986 10 5 25 50 9.5909
Total 62 0 110 87 87

From the table, n = 11, ∑yt = 62, ∑u = 0, ∑u2 = 110, ∑uyt = 87

The two normal equations are:

∑yt = na' + b'∑u and ∑uyt = a'∑u + b'∑u2

∴ 62 = 11a' + b'(0)   .....(i)

and

87 = a'(0) + b'(110)  .....(ii)

From (i), a′ = `62/11` = 5.6364

From (ii), b′ = `87/110` = 0.7909

∴ The equation of the trend line is yt = a′ + b′u

i.e., yt = 5.6364+ 0.7909 u,

where u = t – 1981

Now, for t = 1990,

u = 1990 – 1981

= 9

∴ yt = 5.6364 + 0.7909 × 9

= 12.7545

shaalaa.com
Measurement of Secular Trend
  Is there an error in this question or solution?
Chapter 2.4: Time Series - Q.4

RELATED QUESTIONS

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


Choose the correct alternative :

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


Choose the correct alternative :

What is a disadvantage of the graphical method of determining a trend line?


Fill in the blank :

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


State whether the following is True or False :

Graphical method of finding trend is very complicated and involves several calculations.


State whether the following is True or False :

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


Solve the following problem :

The following table shows the production of pig-iron and ferro- alloys (‘000 metric tonnes)

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

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


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

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

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 data in Problem 10 using 3-yearly moving averages.


Solve the following problem :

Following table shows the number of traffic fatalities (in a state) resulting from drunken driving for years 1975 to 1983.

Year 1975 1976 1977 1978 1979 1980 1981 1982 1983
No. of deaths 0 6 3 8 2 9 4 5 10

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


Solve the following problem :

Fit a trend line to data in Problem 13 by the method of least squares.


Solve the following problem :

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

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

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


Solve the following problem :

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


Choose the correct alternative:

Moving averages are useful in identifying ______.


State whether the following statement is True or False:

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


Obtain trend values for data, using 4-yearly centred moving averages

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

Use the method of least squares to fit a trend line to the data given below. Also, obtain the trend value for the year 1975.

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 8 9 9 8 7 10  

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 the trend values for the following data using 5 yearly moving averages:

Year 2000 2001 2002 2003 2004
Production
xi
10 15 20 25 30
Year 2005 2006 2007 2008 2009
Production
xi
35 40 45 50 55

Following table shows the amount of sugar production (in lakh tonnes) for the years 1931 to 1941:

Year Production Year Production
1931 1 1937 8
1932 0 1938 6
1933 1 1939 5
1934 2 1940 1
1935 3 1941 4
1936 2    

Complete the following activity to fit a trend line by method of least squares:


Complete the following activity to fit a trend line to the following data by the method of least squares.

Year 1975 1976 1977 1978 1979 1980 1981 1982 1983
Number of deaths 0 6 3 8 2 9 4 5 10

Solution:

Here n = 9. We transform year t to u by taking u = t - 1979. We construct the following table for calculation :

Year t Number of deaths xt u = t - 1979 u2 uxt
1975 0 - 4 16 0
1976 6 - 3 9 - 18
1977 3 - 2 4 - 6
1978 8 - 1 1 - 8
1979 2 0 0 0
1980 9 1 1 9
1981 4 2 4 8
1982 5 3 9 15
1983 10 4 16 40
  `sumx_t` =47 `sumu`=0 `sumu^2=60` `square`

The equation of trend line is xt= a' + b'u.

The normal equations are,

`sumx_t = na^' + b^' sumu`              ...(1)

`sumux_t = a^'sumu + b^'sumu^2`      ...(2)

Here, n = 9, `sumx_t = 47, sumu= 0, sumu^2 = 60`

By putting these values in normal equations, we get

47 = 9a' + b' (0)       ...(3)

40 = a'(0) + b'(60)      ...(4)

From equation (3), we get a' = `square`

From equation (4), we get b' = `square`

∴ the equation of trend line is xt = `square`


Following table gives the number of road accidents (in thousands) due to overspeeding in Maharashtra for 9 years. Complete the following activity to find the trend by the method of least squares.

Year 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of accidents 39 18 21 28 27 27 23 25 22

Solution:

We take origin to 18, we get, the number of accidents as follows:

Year Number of accidents xt t u = t - 5 u2 u.xt
2008 21 1 -4 16 -84
2009 0 2 -3 9 0
2010 3 3 -2 4 -6
2011 10 4 -1 1 -10
2012 9 5 0 0 0
2013 9 6 1 1 9
2014 5 7 2 4 10
2015 7 8 3 9 21
2016 4 9 4 16 16
  `sumx_t=68` - `sumu=0` `sumu^2=60` `square`

The equation of trend is xt =a'+ b'u.

The normal equations are,

`sumx_t=na^'+b^'sumu             ...(1)`

`sumux_t=a^'sumu+b^'sumu^2      ...(2)`

Here, n = 9, `sumx_t=68,sumu=0,sumu^2=60,sumux_t=-44`

Putting these values in normal equations, we get

68 = 9a' + b'(0)     ...(3)

∴ a' = `square`

-44 = a'(0) + b'(60)          ...(4)

∴ b' = `square`

The equation of trend line is given by

xt = `square`


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×