Extrapolation
Using an established trend (from historical data or a line of best fit) to forecast future values by extending the trend...
Formula
Forecast Value = Trend Value extended beyond known data range
Real World
Before launching a new phone, Samsung's sales team extrapolates its smartphone revenue trend from the past five years to set production targets — but this became unreliable when the 2020 pandemic broke the established pattern.
Exam Focus
Evaluating extrapolation requires identifying a specific reason the trend may not hold — e.g. market saturation, economic shock, or competitor entry.
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