# Linear trend equation: Predicted value & Residual value

The linear trend equation for the follwing date is y= 1.4286+2.5(t)

Month Value of Fund

1 4

2 6

3 9

4 12

5 14

6 16

7 19

a. What is the predicted value of the fund in the period t=1?

b. What is the predicted value of the fund in the period 3 and period 7?

c. Find the residual values (error) for period 3 and period 7?

https://brainmass.com/statistics/descriptive-statistics/linear-trend-equation-predicted-value-residual-value-334994

#### Solution Preview

Please see the attachment.

Predicted value and residual values

The linear trend equation for the following date is y = 1.4286+2.5(t)

Month Value of Fund

1 4

2 6

3 9

4 12

5 ...

#### Solution Summary

The solution provides step by step method for the calculation of predicted values and residual values. Formula for the calculation is also included.

$2.19