CASE STUDY CHALLENGE
Time Series Analysis: Internet Penetration
The following data shows the percentage of rural, urban and sub-urban Indians who have high speed internet connection at home.
| Year | Rural | Urban | Sub-urban |
|---|---|---|---|
| 2016 | 3 | 9 | 9 |
| 2017 | 6 | 18 | 17 |
| 2018 | 9 | 21 | 23 |
| 2019 | 16 | 29 | 29 |
| 2020 | 24 | 38 | 40 |
Based on the above information, answer the following questions:
Answer the following:
| (a) | (i) Derive straight-line trend by the method of least squares for the rural students.
— OR —
(ii) Derive straight-line trend by the method of least squares for the urban Indians. |
[2] |
| (b) | What is the forecast for the year 2021 for urban group using trend equation? | [1] |
| (c) | What is the forecast for the year 2021 for rural group using trend equation? | [1] |