Question 6.8.2: The simplest and most common use of trend analysis occurs wh...

The simplest and most common use of trend analysis occurs when the points t0,,tnt_{0}, \ldots, t_{n} can be adjusted so that they are evenly spaced and sum to zero. Fit a quadratic trend function to the data (-2, 3), (-1, 5), (0, 5), (1, 4), and (2, 3).

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The t -coordinates are suitably scaled to use the orthogonal polynomials found in Example 5 of Section 6.7:

The calculations involve only these vectors, not the specific formulas for the orthogonal polynomials. The best approximation to the data by polynomials in P2P _{2} is the orthogonal projection given by

p^=g,p0p0,p0p0+g,p1p1,p1p1+g,p2p2,p2p2\hat{p}=\frac{\left\langle g, p_{0}\right\rangle}{\left\langle p_{0}, p_{0}\right\rangle} p_{0}+\frac{\left\langle g, p_{1}\right\rangle}{\left\langle p_{1}, p_{1}\right\rangle} p_{1}+\frac{\left\langle g, p_{2}\right\rangle}{\left\langle p_{2}, p_{2}\right\rangle} p_{2}.

=205p0110p1714p2=\frac{20}{5} p_{0}-\frac{1}{10} p_{1}-\frac{7}{14} p_{2}.

and

p^(t)=4.1t.5(t22)\hat{p}(t)=4-.1 t-.5\left(t^{2}-2\right)           (3).

Since the coefficient of p2p_{2} is not extremely small, it would be reasonable to conclude that the trend is at least quadratic. This is confirmed by the graph in Figure 2.

8.2

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