Home › UGC NET › datainterpretation › Data Interpretation — Trend Forecasting › Linear extrapolation predicts future values by:
Linear extrapolation predicts future values by:
ARandom guessing
BReversing the trend
CExtending the existing trend line forward
DDoubling the data
Answer & Solution
Correct answer: C. Extending the existing trend line forward
1. Linear extrapolation assumes the trend continues.
2. The trend line is extended past current data.
3. Hence option B.
_Source: UGC NET Paper 1 Study Book (ugc-net.com class notes) — Forecasting_