Excel's GROWTH function?

[Jo]

Hi,
Say, I have the following 9 data points:

1 2 3 4 5 6 7 8 9
15.53 19.99 20.43 21.18 25.93 30.00 30.00 34.01 36.47


Using "Forecast" excel function, I get 38.76

Next, I use "Growth" excel function and I get: 16.65

Can someone please apply the meaning of the last value, i.e. growth,
to the above 9 data points?

Thanks,
Jo

 

[Dana DeLouis]

Using "Forecast" excel function, I get 38.76

I believe you are estimating the straight line linear growth at time period
10 to get 38.76.

Next, I use "Growth" excel function and I get: 16.65

You are calculating an exponential growth at time period "1" to get 16.65.
If you change the time to 10, you will get as est. of 41.74.

Put your data, Growth, and Forecast data in 3 columns together, and select
an x-y scatter chart to get a nice view of the differences.

 

[Jo]

I believe you are estimating the straight line linear growth at time period
10 to get 38.76.


You are calculating an exponential growth at time period "1" to get 16.65.
If you change the time to 10, you will get as est. of 41.74.

Put your data, Growth, and Forecast data in 3 columns together, and select
an x-y scatter chart to get a nice view of the differences.

--
HTH :>)
Dana DeLouis











- Show quoted text -

Dana,

Here is how I am writing FORECAST & GROWTH functions:

Forecast(10,D8:L8,$D$7:$L$7) = 38.76
Growth(GROWTH(D8:L8,$D$7:$L$7) = 16.65

Look at Growth function please, what do you mean by saying "If you
change.......you will get as est of 41.74?"

Also, to plot the xy scatter graph describing above, how would the
format look like (I have 9 points, one value for Forcast, and one for
Growth)?

Please elaborate, THANKS

Jo

 

[Jo]

I believe you are estimating the straight line linear growth at time period
10 to get 38.76.


You are calculating an exponential growth at time period "1" to get 16.65.
If you change the time to 10, you will get as est. of 41.74.

Put your data, Growth, and Forecast data in 3 columns together, and select
an x-y scatter chart to get a nice view of the differences.

--
HTH :>)
Dana DeLouis











- Show quoted text -

Dana,

Can you please explain how the growth for the 1st time period was
16.65 and, for the 10th period, it became 41.74? I mean how can this
be validated?

Thanks,
Jo

 

[Dana DeLouis]

Look at Growth function please, what do you mean by saying "If you

change.......you will get as est of 41.74?"

For the growth function, if you omit the Xs, they are assumed to be
1,2,...ect, which is what you have.
If you omit the specicif x value, it is assumed to be 1.
I have given your Y values the range name "Ys."
Hence:

=GROWTH(Ys)

is your estimate for time 1.
Migth be less confusing if you specify time 1 as in:
=GROWTH(Ys,,1)
For time period 10, you have to specify 10:
=GROWTH(Ys,,10)

Both return the following.
16.65355287
41.74052172

Also, to plot the xy scatter graph describing above, how would the
format look like (I have 9 points, one value for Forcast, and one for
Growth)?

Hi. It looks like your data is horizontal.
Make your first line 1,2,...9
These act as the x-axis labels in the scatter graph.
Right below these, put your Forcast results.
And below that, put the Growth results.
Now...select these 29 cells, and select a Scatter chart.
The 1,2,...9 will be along the x-axis, and your 2 functions will plot.
Hope this helps a little. Post back if not. :>)