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Time Series & Trend · Question 57 of 68

Question 57

MediumOriginal question

When fitting a trend to an odd number of years, why is xx measured from the middle year?

Options for question 57

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. The normal equations are ∑y=na+b∑x\sum y = na + b\sum x and ∑xy=a∑x+b∑x2\sum xy = a\sum x + b\sum x^{2}.

  2. With ∑x=0\sum x = 0 they separate: a=∑yna = \frac{\sum y}{n}, b=∑xy∑x2b = \frac{\sum xy}{\sum x^{2}}.

Concept
The normal equations
Typical time
90 s
Your time
—
The rule this testsA straight-line trend by least squares
Practise this chapter →

Ten questions from Time Series & Trend, at your own pace.

Practise this chapter →

Ten questions from Time Series & Trend, at your own pace.