Trend line

[AndreasN]

Good evening,
In Excel 2000: Which is the best trend/ regression type to use in case the x
axis represents dates and the y currencies?
Thanks in advance.

 

[Michael R Middleton]

AndreasN -

In Excel 2000: Which is the best trend/ regression type to use in case the
x axis represents dates and the y currencies? <

My opinion: There's no single answer to your question. Among other things,
the answer depends on the pattern of your data, your knowledge of any
underlying phenomena that influence the data, the purpose of the analysis
(e.g., explanation of historical data vs. prediction of future values), etc.
The best model may even be one that isn't available as a Trendline option,
e.g., a lag 1 autoregressive model, or a multivariate model using other
related time series data as explanatory variables.

- Mike

www.mikemiddleton.com

 

[AndreasN]

Mike, thank you very much for accurate and responsible reply. Well, the
purpose is prediction but, indeed, what I didn't consider from the first
place is that there is not some kind of functional relationship bettween
curency values and time.