Extrapolation: Difference between revisions
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imported>Doug Williamson (Note valuation as a warning area for application, expressly.) |
imported>Doug Williamson (Layout.) |
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A straight-line estimation method where the estimated result lies beyond the range spanned by two or more known data points. | |||
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More generally, any estimation method where the estimated result lies beyond the range spanned by two or more known data points. (Not necessarily using straight-line methods of estimation.) | |||
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Extrapolation can be particularly unreliable when historical trends - for example historic growth rates - are projected into future periods for planning or valuation purposes. | Extrapolation can be particularly unreliable when historical trends - for example historic growth rates - are projected into future periods for planning or valuation purposes. | ||
== See also == | == See also == | ||
Revision as of 15:40, 13 May 2016
1.
A straight-line estimation method where the estimated result lies beyond the range spanned by two or more known data points.
2.
More generally, any estimation method where the estimated result lies beyond the range spanned by two or more known data points. (Not necessarily using straight-line methods of estimation.)
Extrapolation is generally a less reliable estimation method than interpolation.
Extrapolation can be particularly unreliable when historical trends - for example historic growth rates - are projected into future periods for planning or valuation purposes.
