Forecast Value for FY07 (XLS 2003 SP2)

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Hello you all,

I can’t seem to get this to work, and perhaps the function FORECAST is not the correct function to use in this case?

I have values for FY04, FY05, FY06. I want to forecast, based on those values what I could expect for FY07. In the very simplest scenario the values are 7, 6, 5. for their respective years.

I’ve set my spreadsheet as below, but can’t get anything to work . Any suggestions? I was hoping for a simple solution??

Thanks so much,
Rich

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If we presume a linear extrapolation:
=FORECAST(D1,A2:C2,A1:C1)
will yield 4

Steve

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Hi Steve,

Yes, I’ve tried that, but what if it isn’t linear? For example: What if 2004 = 10?

Cheers,
Rich

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You’d have to specify a model – Excel cannot guess that. Excel has FORECAST for linear trends and GROWTH for exponential trends. For other types of extrapolation, you’d have to create a table with intermediate values according to the model.

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Hi Hans,

Thanks.

Can you give me an example for my scenario?

Cheers,
Rich

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What model do you want to use?

Personally, with only 3 points I would not stray too much from linear or exponential…

Steve

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Hi Steve,

Okay, I’ll call it…. exponential…

Cheers,
Rich

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Then you can use:
=GROWTH(A2:C2,A1:C1,D1)

which gives about 4.25

Steve

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Use this formula:

=FORECAST(D1,A2:C2,A1:C1)

Were the replies to post 647,146, post 644,676, post 643,251, and post 641,811 useful?

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Hi everyone,

I wanted thank all of you, your responses have helped us very greatly, and I really appreciate your help.

Cheers,
Rich

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