Forecast Function

Forecast Function in Excel

A useful function for business

FORECAST function in Excel is a statistical function that calculates, or predicts, a future value by using existing values. The predicted value is a y-value for a given x-value. The known values are existing x-values and y-values, and the new value is predicted by using linear regression. You can use this Excel function to predict future sales, inventory requirements, consumer trends or weight loss!. Syntax  FORECAST(x, known_y’s, known_x’s)  X is the data point for which you want to predict a value.  Known_y’s is the dependent array or range of data.  Known_x’s is the independent array or range of data. Remarks • If x is nonnumeric, FORECAST returns the #VALUE! error value. •If known_y’s and known_x’s are empty or contain a different number of data points, FORECAST returns the #N/A error value. •If the variance of known_x’s equals zero, then FORECAST returns the #DIV/0! error value.

The equation for FORECAST is a+bx, where:

Forecast function in Excel

Variable a


Variable Forecast Function MS Excel

Variable b

and where x and y are the sample means AVERAGE(known_x’s) and AVERAGE(known y’s).  The Excel training video demonstrates the concept.

Watch the video:

Further reading:

Description of the FORECAST function in Excel

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