To calculate future sales, we will use the TREND function. Suppose we wish to build a forecast or extrapolate the future revenue of a company. Below, we will extrapolate in Excel using the forecast function.Įxample – Forecast and Extrapolate in Excel To understand the uses of the TREND function, let’s consider an example. The TREND function uses the least squares method to find the line of best fit and then uses IT to calculate the new y-values for the provided new x-values. If false, b is set equal to 0 (zero) and the m-values are adjusted so that y = mx. If const is TRUE or omitted, b is calculated normally. Const (optional argument) – This specifies whether to force the constant b to equal 0.If the argument is omitted, it is set to be equal to the. New_x’s (optional argument) – This provides one or more arrays of numeric values that represent the new_x’s value.If omitted, the set of takes on the value. If we provide the argument, it should be of the same length as the set of known_y’s. Known_x’s (optional argument) – This is a set of x-values.Known_y’s (required argument) – This is the set of y-values we already know in the relationship y = mx + b.The TREND function uses the following arguments: For example, we can use trends to predict the future revenue of a particular company. Perform financial forecasting, reporting, and operational metrics tracking, analyze financial data, create financial models, the function can help us in predicting future trends.
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This guide will show you step-by-step how to extrapolate in Excel using this function.Īs a financial analyst Financial Analyst Job Description The financial analyst job description below gives a typical example of all the skills, education, and experience required to be hired for an analyst job at a bank, institution, or corporation. The function extends a linear trend line to calculate the additional y-values for a new set of x-values. This cheat sheet covers 100s of functions that are critical to know as an Excel analyst that will calculate the linear trend line to the arrays of known y and known x. The TREND function is an Excel Statistical function Functions List of the most important Excel functions for financial analysts. TREND Function – Forecast & Extrapolate in Excel
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