# Thread: Forecasting in Excel using a Log function Thanks: 0 Likes: 0

1. ## Forecasting in Excel using a Log function

Hi guys!!
I need to forecast in Excel using a Logarithmic function for the following data:

 Year Year Number Profit 2012 0 24,992 2013 1 41,521 2014 2 61,105 2015 3 82,340

I need to find the forecasted values for 2016 and 2017 as well as graph to the log function. But I don't know how to do the equation. Can someone help me?

2. ## Re: Forecasting in Excel using a Log function

Originally Posted by aha_cupcake
Hi guys!!
I need to forecast in Excel using a Logarithmic function for the following data:

 Year Year Number Profit 2012 0 24,992 2013 1 41,521 2014 2 61,105 2015 3 82,340

I need to find the forecasted values for 2016 and 2017 as well as graph to the log function. But I don't know how to do the equation. Can someone help me?
Plotting Profit vs Year Number produces a straight line conforming to the equation: Profit = 19163*YrNo + 23745 with an R-squared fitting factor of 0.9969.

Why do you need a log function to forecast a nearly perfect straight line fit?

3. ## Re: Forecasting in Excel using a Log function

Originally Posted by JoeMo
Plotting Profit vs Year Number produces a straight line conforming to the equation: Profit = 19163*YrNo + 23745 with an R-squared fitting factor of 0.9969.

Why do you need a log function to forecast a nearly perfect straight line fit?
For our assignment they asked us to forecast using three different estimates - a best case scenario, worst case scenario and best estimate. So while it does appear there is a straight line I still need to consider other options.

4. ## Re: Forecasting in Excel using a Log function

Originally Posted by aha_cupcake
For our assignment they asked us to forecast using three different estimates - a best case scenario, worst case scenario and best estimate. So while it does appear there is a straight line I still need to consider other options.