Question

The following table shows the index of industrial production for the period from 1976 to 1985, using the year 1976 as the base year.

Year	1976	1977	1978	1979	1980	1981	1982	1983	1984	1985
Index	0	2	3	3	2	4	5	6	7	10

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

Answer 1

Taking year on X-axis and index on Y-axis. We plot the points for indices corresponding to the years. Joining these points we get the graph of the given time series. We draw trend line as shown in the figure.