What is the difference between FORECAST and TREND?

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Feb 20

Difference Between - "Forecast" & "Trend"

Formulas, Arrays

Hi there,

What is your word on this topic?

Do you know the difference between Forecast & Trend functions? Please share your ideas in the below comments section.

Let me explain the general meaning first:

Forecast: It is something which assumes for future. The expectations of future numbers in terms of company's growth can be called as Forecast.

Trend: It is something which represents for current day. Say the trend of the youth in today's generation is carrying Android Mobiles.

Similarly, in terms of Excel understanding:

...

Forecast for a single value and trend for multiple values.
FORECAST computes a single new y value for a single new x value where as TREND is more suited to data points in a series such as a time series, and is capable of computing multiple y values for multiple new x values

FORECAST:

Forecast function has 3 arguments where in first argument tells us to consider the new x value and the second argument tells us the known "y" value, which means already existing value for y and the last argument is known "x" value.

Once inputting these values to the function, it will deliver the baby "y", which is forecasted value. This means that FORECAST will generate single value or output from the given input values.

FORECAST function is explained with example

TREND:

This function has four arguments where first argument required is known "y" values and the second with known "x" values and third argument is new "x" values and the last (fourth) argument is constant value, which means either you have a limited cost to spend in a month or there is no limited cost to spend for a month. This function will delivery a baby "y" values as a result.

This means TREND function will deliver either single value or most of the times it delivers series of values as an array, functionality, as a result.

TREND function delivers an array of values, how?

ADVANTAGES OF THESE FUNCTIONS:

Both the functions predict the missing values based on existing data

Missing values might be experimental data or future data

Both functions work similarly and generate same results however, FORECAST delivers single value where as TREND delivers array of values.
Both the functions will have some relationship between the data so, data should always correlate with each other, else meaningless.