# How Growth Trend Works

1. ## How Growth Trend Works

Hi All,

I am having trouble understanding how Custom Fill - Growth Trend works in
Excel 2003.

The data I have is:

\$ 23114 \$24567 \$22874 \$27211

When I seelect all those 4 cells, then right drag across 5 more cells and
select Growth Trend, the results are:

\$27069 \$28225 \$29430 \$30687 \$31997

I am confused as to how Excel arrives at those results i.e. what is the
calculation it uses to get those numbers? Why is the first forecasted value
(\$27069) 99% of the previous value then the rest are 104% of their preceeding
values?

Any help would be greatly appreciated, Johnson

2. ## Re: How Growth Trend Works

Johnson -

The values are determined using an exponential fit (like the Add Trendline
exponential function on a chart).

You can get the same results using the array-entered worksheet function
GROWTH(known_y's,known_x's,new_x's,const)
where known_y's are your four values,
known_x's are 1,2,3,4,
new_x's are 5,6,7,8,9, and
const is True.

- Mike
www.mikemiddleton.com

"Johnson" <Johnson@discussions.microsoft.com> wrote in message
news:EEDB9094-1EEC-4CC4-B7CE-06CBD69F755E@microsoft.com...
> Hi All,
>
> I am having trouble understanding how Custom Fill - Growth Trend works in
> Excel 2003.
>
> The data I have is:
>
> \$ 23114 \$24567 \$22874 \$27211
>
> When I seelect all those 4 cells, then right drag across 5 more cells and
> select Growth Trend, the results are:
>
> \$27069 \$28225 \$29430 \$30687 \$31997
>
> I am confused as to how Excel arrives at those results i.e. what is the
> calculation it uses to get those numbers? Why is the first forecasted
> value
> (\$27069) 99% of the previous value then the rest are 104% of their
> preceeding
> values?
>
> Any help would be greatly appreciated, Johnson

3. ## Re: How Growth Trend Works

Thanks for the help!!

"Mike Middleton" wrote:

> Johnson -
>
> The values are determined using an exponential fit (like the Add Trendline
> exponential function on a chart).
>
> You can get the same results using the array-entered worksheet function
> GROWTH(known_y's,known_x's,new_x's,const)
> where known_y's are your four values,
> known_x's are 1,2,3,4,
> new_x's are 5,6,7,8,9, and
> const is True.
>
> - Mike
> www.mikemiddleton.com
>
> "Johnson" <Johnson@discussions.microsoft.com> wrote in message
> news:EEDB9094-1EEC-4CC4-B7CE-06CBD69F755E@microsoft.com...
> > Hi All,
> >
> > I am having trouble understanding how Custom Fill - Growth Trend works in
> > Excel 2003.
> >
> > The data I have is:
> >
> > \$ 23114 \$24567 \$22874 \$27211
> >
> > When I seelect all those 4 cells, then right drag across 5 more cells and
> > select Growth Trend, the results are:
> >
> > \$27069 \$28225 \$29430 \$30687 \$31997
> >
> > I am confused as to how Excel arrives at those results i.e. what is the
> > calculation it uses to get those numbers? Why is the first forecasted
> > value
> > (\$27069) 99% of the previous value then the rest are 104% of their
> > preceeding
> > values?
> >
> > Any help would be greatly appreciated, Johnson

>
>
>

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