Which Type Of Trend Line To Choose For Your Data?

What are Trend Lines?

What are Trend Lines?

The trend lines represent the trend or movement of any data set. For example if you want to track the increase or decrease in stock prices over a period of time, then you can track it by drawing trend lines. The trend lines are used to observe and analyze the variation in data over a period of time. Few common real life applications where trend lines are used are weather reports, fluctuation in oil prices and a lot more.

The trend lines are also used to evaluate the success of an event or action that happened in an organization. For example, if the company has invested considerable amount in advertising their products, then the trend line will clearly show the impact of the advertising campaign on the sales ratio.

I like to share this Statistics Calculator with you all through my article.

How to Draw Trend Lines?

You can draw trend lines by simply plotting the data points specified in the data set. However to draw them properly, you have to calculate the slope and position using the statistical techniques such as linear regression. The techniques will differ based on the type of trend lines you choose.

Different Types of Trend Lines

There are six common types of trend lines. They are: (1) Linear (2) Logarithmic (3) Power (4) Exponential (5) Polynomial and (6) Moving Average. Here is an overview of each type of trend line:

Linear Trend Line: If the data points that are plotted forms a line that is straight, then linear trend line will best suit the data. Linear trend line can be drawn to track the mathematical function f (v) = xv + y where the variable v represents data points, x and y are the constants that are determined by the numerical analysis.

Logarithmic Trend Line: The logarithmic trend line is recommended when the plotted data either shows a decrease or increase steeply and then levels out.

Power Trend Line: Power trend line has to be chosen if the data points form the downward or upward arc when plotted.

Exponential Trend Line: The exponential trend line is needed when the plotted points are turning sharply in one end when compared to the other.

Polynomial Trend Line: The polynomial trend line is opted when the plotted points are changing the direction several times.

Moving Average Trend Line: If there are several fluctuations in the points that are plotted, then the moving average trend line has to be used. This trend line calculates the average of specific set of data points and this calculated average is plotted as the next point.

Based on the plotted data, you can select the appropriate trend line from the above list and use the corresponding mathematical function to draw the trend line.

by: Omkar Nayak

POST COMMENT

The Road To Recovery Following Breast Augmentation Steps Towards Drug Abuse Recovery Common Mistakes Made In Data Recovery Data Entry India Work Is Fairly Simple Various Recovery Plans From A High Priced Rehab Facility Fix Media Data Loss Caused By Memory Card Error Focus On The Addiction Recovery Path With Muskoka Recovery Center Opting In For Innovative Data Center Solutions Get To Know About Cisco Data Center Certification Cisco Data Center Networking Infrastructure Support Specialist Certification Achieve Word Document Recovery On Mac Enhance Data Center Performance With Virtualization Compelling Storage Server Solutions For All Data Centre Applications