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This model is useful to study the relationships between two variables (explanatory and explained), for example: amount depending on the price, sales in terms of advertising, production as a function of the number of hours worked; demand-price and demand-rent, ...
Once you have chosen the functional relationship with the best fit (linear, potential, exponential, logarithmic or parabolic) , this template can be used for simulations and future estimations.
This Excel template predicts trends, creating a mathematical function of time by simple regression techniques. In other words, trying to explain a dependent variable (also called endogenous) according to the dependent variable time (exogenous or explanatory). After entering data we can see the graph and trends calculated, choosing the model with a greater degree of fit (coefficient of determination higher). The selected function can be used to make predictions of the variable under study (y), assigning values in function to the time variable (x). It can also be seen in the graph, where there is the trend by adding more data of time (years, months, ...) in the DATE column. The estimation is useful for time series forecasting (economic or otherwise) when all you know is the data series over time.
