2. Trend Line of best fit
A trend line of best fit is a straight line that represents the general direction and pattern of a set of data points. It is used to identify and analyze the overall trend or relationship between variables.
The trend line is often drawn on a scatter plot, where each data point is plotted as a point. The line is then placed in a way that minimizes the overall distance between the data points and the line. This line is known as the line of best fit or regression line.
The trend line can be used to make predictions or forecasts based on the observed data. It provides insight into the relationship between two variables, such as the dependent and independent variables in regression analysis. It can also be used to identify outliers or anomalous data points that do not conform to the overall trend.
The equation of the trend line is typically determined using statistical methods, such as linear regression, which fits a straight line to the data points. The equation of the line can then be used to estimate or predict the value of the dependent variable based on the value of the independent variable.
It is important to note that the trend line of best fit represents the overall trend or relationship in the data, but does not necessarily pass through each individual data point. It is a statistical tool that helps to summarize and analyze the data in a meaningful way.