How does the TREND function estimate future quantities?

The TREND function estimates future quantities by calculating a trend line based on the input worksheet values. This function utilizes linear regression analysis, which finds the relationship between the existing data points and extrapolates that into the future to provide estimations. The methodology involves taking historical data, analyzing it for patterns, and then projecting those patterns forward to predict future values.

This approach is particularly useful in scenarios where a consistent increase or decrease is observed over time, allowing planners and analysts to make informed decisions based on projected trends.

The other methods mentioned do not accurately describe the mechanism of the TREND function; they involve different approaches to forecasting and analysis that are not directly related to the linear trend projection performed by the TREND function.