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Forecast

The FORECAST function predicts a future value (y-value) based on existing x-values and y-values using linear regression. It takes an x-value to predict for, an array or range of existing y-values (dependent data), and an array or range of existing x-values (independent data). It calculates a linear regression from the known data and uses it to predict the y-value for the given x-value. The function can be used to predict things like future sales, inventory needs, or trends based on historical data.

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18 views

Forecast

The FORECAST function predicts a future value (y-value) based on existing x-values and y-values using linear regression. It takes an x-value to predict for, an array or range of existing y-values (dependent data), and an array or range of existing x-values (independent data). It calculates a linear regression from the known data and uses it to predict the y-value for the given x-value. The function can be used to predict things like future sales, inventory needs, or trends based on historical data.

Uploaded by

ionbarbu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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FORECAST

See Also

Calculates, or predicts, a future value by using existing values. The predicted


value is a y-value for a given x-value. The known values are existing x-values
and y-values, and the new value is predicted by using linear regression. You can use this
function to predict future sales, inventory requirements, or consumer trends.

Syntax

FORECAST(x,known_y's,known_x's)

X is the data point for which you want to predict a value.

Known_y's is the dependent array or range of data.

Known_x's is the independent array or range of data.

Remarks

• If x is nonnumeric, FORECAST returns the #VALUE! error value.


• If known_y's and known_x's are empty or contain a different number of data points,
FORECAST returns the #N/A error value.
• If the variance of known_x's equals zero, then FORECAST returns the #DIV/0! error
value.
• The equation for FORECAST is a+bx, where:

and:

and where x and y are the sample means AVERAGE(known_x's) and


AVERAGE(known y's).

Example

The example may be easier to understand if you copy it to a blank worksheet.

How?

1. Create a blank workbook or worksheet.


2. Select the example in the Help topic. Do not select the row or column headers.
Selecting an example from Help

3. Press CTRL+C.
4. In the worksheet, select cell A1, and press CTRL+V.
5. To switch between viewing the results and viewing the formulas that return the results,
press CTRL+` (grave accent), or on the Tools menu, point to Formula Auditing, and
then click Formula Auditing Mode.

A B
1 Known Y Known X
2 6 20
3 7 28
4 9 31
5 15 38
6 21 40
Formula Description (Result)
=FORECAST(30,A2:A6,B2:B6) Predicts a value for y given an x value of 30 (10.60725)

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