The sales of a company in million of rupees for the years 1994-2001 are given below:
Year: 1994 1995 1996 1997 1998 1999 2000 2001
Sales: 550 560 555 585 540 525 545 585
Fit a trend Line
Estimate the sales for the year 1993.
The regression equation will be y = a + bx
Constants a and b can be obtained by
Σy = ax + bΣx and Σxy = aΣx + bΣx2
At 1994
"4445 = 1994a + 15980b \\\\\n\n8878905 = 15980a + 31920092b"
Solving equations:
"a = -1.146 \\times 10^{-6} \\\\\n\nb = 0.278 \\\\\n\ny = -1.146 \\times 10^{-6} + 0.278x"
At 1993
"y = -1.146 \\times 10^{-6} + 0.278 \\times 1993 \\\\\n\n\u2248 554"
The sales for the year 1993 is 554 million of rupees.
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