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Incorrect Nonlinear Trend Curves in Excel

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  • Rick Hesse,

Abstract

Many software programs, including Excel, make it easy to fit exponential trends (that is compound interest growth) to time series data. However, with Excel and some other products, there is a big problem: the exponential functions are done incorrectly because they use logarithmic transformations. Rick illustrates the right way to fit exponential trends, and he shows how misleading the Excel procedure can be. Copyright International Institute of Forecasters, 2005

Suggested Citation

  • Rick Hesse,, 2006. "Incorrect Nonlinear Trend Curves in Excel," Foresight: The International Journal of Applied Forecasting, International Institute of Forecasters, issue 3, pages 39-43, February.
  • Handle: RePEc:for:ijafaa:y:2006:i:3:p:39-43
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    Cited by:

    1. Hargreaves, Bruce R. & McWilliams, Thomas P., 2010. "Polynomial Trendline function flaws in Microsoft Excel," Computational Statistics & Data Analysis, Elsevier, vol. 54(4), pages 1190-1196, April.
    2. McCullough, B.D. & Heiser, David A., 2008. "On the accuracy of statistical procedures in Microsoft Excel 2007," Computational Statistics & Data Analysis, Elsevier, vol. 52(10), pages 4570-4578, June.

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