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Business Statistics 3rd Unit
Business Statistics 3rd Unit
Interpolation:
Definition:
*If the value of x for which the value of y is to be estimated is an
intermediate value in the given set of values of ‘x’ then the method of determining
‘y’ is called interpolation.
Extrapolation:
Definition:
*If the value of x lies outside the given set of values of ‘x’ then the method
of determining ‘y’ is called extrapolation.
Example:
Difference: 2 1 3 1
Year(x): 1982 1984 1985 1988 1989
Profit(y): 22 23 24 25 26
Methods of interpolation:
1.Newtons forward method(Only if "x" values are equidistant)
2.Newtons backward method(Only if "x" values are equidistant)
3.Binomial method
4.Lagranges method
5.Divided difference Method
Formula
Newton's Forward Difference formula
x = 1895
Solution:
h=x1-x0=1901-1891=10
y(1895)=46+8+0.6+0.128+0.1248
y(1895)=54.8528
x = -1
Solution:
Difference 1 1 1
x: 0 1 2 3
f(x): 1 0 1 10
Step 1: Check if "x" values are equidistant.
The "x" values are equidistant, with common difference h=1, so we can use
Newton's method.
Step 2:
The position of x=-1 lies before the starting value, so we use Newton's forward
formula.
x012 3
y 1 0 1 10
h=x1-x0=1-0=1
u= = =-1
x x0 1 0
u 1
h 1
y(-1)=1+(-1)×(-1)+ ×2+ ×6
y(-1)=1+1+2-6
y(-1)=-2
Exercise:
1.Using Newton’s forward interpolation formula, find the polynomial f(x) satisfying
the following data. Hence, evaluate y at x=5.
x 4 6 8 10
y 1 3 8 10
Ans:y=1.25
Newton's Backward Difference formula
v=
y(x)=yn+ vΔyn-1+ Δ2yn-2+ Δ3yn-3+ Δ4yn-4+….
Examples
1. Find Solution using proper method:
x f(x)
1891 46
1901 66
1911 81
1921 93
1931 101
x = 1925
Solution:
Step 1: Check if the "x" values are equidistant.
Difference: 10 10 10 10
x: 1891 1901 1911 1921 1931
f(x): 46 66 81 93 101
Here "x" values are equidistant with common difference h=10, so we can use
Newton's method.
h=x1-x0=1901-1891=10
v= = =-0.6
Newton's backward difference interpolation formula is
y(x)=yn+vΔyn-1+ Δ2yn-2+ Δ3yn-3+ Δ4yn-4
y(1925)=101-4.8+0.48+0.056+0.1008
y(1925)=96.8368
x=4
Solution:
The value of table for x and y
x012 3
y 1 0 1 10
h=x1-x0=1-0=1
v= =4-31=1
y(4)=10+(1×9)+ ×8+ ×6
y(4)=10+9+8+6
y(4)=33
×y2+...+ ×yn