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Wednesday, 26 December 2012
Sunday, 2 December 2012
Forecast - Chart Trend Line - Excel
Forecast future values based on historic trends
Insert – Charts – Line Chart
Chart tools - Layout - Trendline - Linear Trend line
Example Forecast Using a Linear Trend line
Example Trend Forecast Source Data
Trendlines
Trend lines project future values using regression analysis (the relation ship between the A and Y axis)
Which trend line to use
The closer the R-squared value is to 1 the more reliable the trend line is, typically a trend line that is:
- linear is best for data increasing/decreasing at a steady state i.e. resembles a line
- logarithmic is best for data increasing/decreasing at a fast rate which subsequently slows i.e. resembles curve
- Moving average is best for fluctuating data as it smooths out the trend
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