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How Growth Trend Works

  1. #1
    Johnson
    Guest

    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. #2
    Mike Middleton
    Guest

    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. #3
    Johnson
    Guest

    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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