Figuring The Future | Statistics In Your World |
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Consider Deviations The Least Squares Method |
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*Deviations Why would this not be a sensible line? The best trend line is one that takes account of all the points fairly. One way to check this is to find the vertical distances of individual points from the line drawn. These distances are called DEVIATIONS. The deviations should be as small as possible.
*Considering
Deviations
Table 4 - Deviations of cinema attendances given from the trend line drawn (Millions).
The deviation is the difference between the actual attendance and the attendance
obtained from the trend line. Notice that if a point is above the line, it has been given
a positive (+) deviation and if below a negative deviation. One possible suggestion is to add all the deviations together.
*The Least
Squares Method A line close to the points will have a small sum. A line far from the points will have a large sum. The line with the smallest value is best. Table 5 shows the squared deviations obtained from Table 4. Remember the deviations are in millions (106), so the squared deviations are
in millions of millions (1012).
Table 5 - Deviations and squared deviations. Tables similar to 4 and 5 can be drawn for any set of data.
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