Exhibit 17-2
Consider the following time series.
-Refer to Exhibit 17-2. The slope of linear trend equation, b₁, is

Question

Exhibit 17-2 Consider the following time series. -Refer to Exhibit 17-2. The slope of linear trend equation, b₁, is A)2.5 B)2.0 C)1.0 D)1.25

Quizplus · Accepted Answer

To calculate the slope of the linear trend equation, we need to use the formula b = (nΣXY - ΣXΣY) / (nΣX^2 - (ΣX)^2), where n is the number of data points, ΣXY is the sum of the products of X and Y values, ΣX and ΣY are the sums of X and Y values respectively, and ΣX^2 is the sum of squared X values. When we apply this formula to the given time series data, we get b = (5(162) - (1+2+3+4+5)(54)) / (5(55) - (1+2+3+4+5)^2) = 2. Therefore, the slope of the linear trend equation is 2.0.

Exhibit 17-2 Consider the Following Time Series