Extrapolation: Difference between revisions
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imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Note valuation as a warning area for application, expressly.) |
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Extrapolation is generally a less reliable estimation method than | 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 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 19:22, 14 November 2015
- A straight-line estimation method where the estimated result lies beyond the range spanned by two or more known data points.
- 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.
