Question 4 OR (d)

Second-degree parabolic trend of production and a forecast for 2026

9 marks

Time to write
About 18 minutes
Topic
Trend fitting

Question

Question 4 OR (d) · 9 marks

The production of commodities in 2017-2023 is shown below:

Year201820192020202120222023
Production ('000 tonnes)111316172023

You have to:

  1. Fit a parabolic trend of the second degree.

  2. Compute the trend values for the years from 2018 to 2023.

  3. Predict the production in the year 2026.

Reworded from the university paper: names and figures differ, the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

18 minfor 9 marks

Read from the question

  • ComputeFormula first, then the working, then the answer with its unit (₹, %, units).

What the paper leaves open

As printed, the heading says 2017-2023 but the table has six years, 2018 to 2023; the third item is numbered (ii) a second time.

Write it in this order

  1. Read the data; note exactly what is asked 1 min
  2. 1 Working table and normal equations 3 marks 5 min
  3. 2 Solving for a, b and c; the trend equation 3 marks 5 min
  4. 3 Trend values 2 marks 4 min
  5. 4 Forecast for 2026 1 mark 2 min
  6. Check: arithmetic, units (₹, %), final answer underlined 1 min

Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Method. A second-degree parabola Y = a + bX + cX² is fitted by least squares, using normal equations as for a straight line. The table covers six years, 2018 to 2023 (the heading's "2017-2023" is a misprint, as the paper note says). With an even number of years, X = 2(year − 2020.5), in half-year units from the middle of 2020 and 2021, so ΣX = ΣX³ = 0 and

ΣY = na + cΣX²; ΣXY = bΣX²; ΣX²Y = aΣX² + cΣX⁴.

Working table (production Y in '000 tonnes)

YearYXX²X⁴XYX²YTrend T
201811−525625−5527511.11
201913−3981−3911713.09
202016−111−161615.26
202117111171717.60
20222039816018020.12
20232352562511557522.82
Total1000701,414821,180

(i) The parabolic trend

  • From ΣXY = bΣX²: 82 = 70b, so b = 1.1714.
  • 100 = 6a + 70c … (1) and 1,180 = 70a + 1,414c … (2). Multiplying (1) by 70 and (2) by 6: 7,000 = 420a + 4,900c and 7,080 = 420a + 8,484c. Subtracting, 80 = 3,584c, so c = 0.0223; then 6a = 100 − 70 × 0.022321 = 98.4375, a = 16.4062.

Y = 16.4062 + 1.1714X + 0.0223X², origin: middle of 2020 and 2021 (1 January 2021); X unit: half a year; Y in '000 tonnes.

(ii) Trend values, 2018 to 2023

From the equation (last column of the table): 2018 11.11; 2019 13.09; 2020 15.26; 2021 17.60; 2022 20.12; 2023 22.82 thousand tonnes. The yearly rise in trend grows slowly (1.98, 2.17, 2.34, 2.52, 2.70), reflecting the small positive c.

(iii) Production in 2026

For 2026, X = 2(2026 − 2020.5) = 11: Y = 16.4062 + 1.1714 × 11 + 0.0223 × 121 = 16.4062 + 12.8857 + 2.7009 = 31.99 thousand tonnes (about 31,990 tonnes).

The forecast assumes the gently accelerating growth of 2018–2023 continues for three more years.

Where the 9 marks sit

#ComponentMarks
1Working table and normal equations3
2Solving for a, b and c; the trend equation3
3Trend values2
4Forecast for 20261
Total9
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