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Thread: Forecasting in Excel using a Log function
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    Default 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?

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    Default Re: Forecasting in Excel using a Log function

    Quote Originally Posted by aha_cupcake View Post
    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?
    Joe

    When I was a young man I knew everything. Now that I'm older, I realize I know very little, and what I do know, I tend to forget!

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    Default Re: Forecasting in Excel using a Log function

    Quote Originally Posted by JoeMo View Post
    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.

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    Default Re: Forecasting in Excel using a Log function

    Quote Originally Posted by aha_cupcake View Post
    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.
    Good luck with your assignment!
    Joe

    When I was a young man I knew everything. Now that I'm older, I realize I know very little, and what I do know, I tend to forget!

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