Tip #18: 6 Trendlines and when to use them in your spreadsheet data?

Tip #18: 6 Trendlines and when to use them in your spreadsheet data?

Charts are a great tool for visualizing and interpreting large chunks of data in spreadsheets. Zoho Sheet offers you 35+ chart options, along with AI-powered chart recommendations based on the data set you select. There are various chart elements that can help you format and add additional details to your charts based on how you'd like to visualize the data.
 
A trendline is one of the chart elements that helps you visualize the general direction or trend of the data points plotted on the chart. It helps you observe the overall movement, pattern, or tendency of data over time to support analysis and forecasting. For example, let's take a chart indicating the sales of product X increasing over the given number of years. By adding trendlines to your chart, you can easily deduce the increasing sales.


What are the different types of trendlines and when should you use them? 

  • Linear
  • Power
  • Exponential
  • Logarithmic
  • Polynomial
  • Moving average

Linear


Linear trendlines are suitable for data sets that indicate a steady increase or decrease over a given period of time and are often straight lines.



In this example, an employee's annual salary has steadily increased in relation to their work experience, indicating a linear trendline.


Power


Power trendlines are helpful in predicting data sets that increase at a regular interval and result in a curved line.



In this example, the number of people following a Twitter account has increased rapidly over the course of a year.

Exponential


Exponential trendlines form a curved line representing values that increase or decrease at an accelerating rate. It's used for data with exponential growth or decay.



In this example, bicycle usage decreases rapidly over the given years.

Logarithmic


Logarithmic trendlines are suitable to represent data sets that show an increase or decrease and then gradually stabilize.



In this example, the person's height increases as he grows and then levels out as he reaches maturity.

Polynomial


Polynomial trendlines are appropriate capturing complex relationships between variables in data sets that keep oscillating or have intricate fluctuations.This type of trendline is classified into different types based on the degree or order. In Zoho Sheet, you can select the degree of the polynomial (2 to 10) based on how perfectly the trendline fits the given data set.



In this example, electricity consumption gradually increases and then decreases over the given months.

Moving average


The moving average trendline takes the fluctuations in the given values, averages them, and uses the average values to plot the trendline.
Moving average trendlines are useful for showing the overall trajectory of data sets with a lot of ups and downs. 

The stock market is a perfect match for the moving average trendline because stocks generally fluctuate on a regular basis.




Zoho Sheet offers multiple chart elements, like trendlines, data labels, legends, and gridlines, to help you customize the way your charts visualize information and ideas. You can also check out our post on the 3 important chart customizations.

 

Follow our Tips and Tricks forum to explore similar tips on using Zoho Sheet for your business. You can also join our community to stay informed on the latest updates and feature enhancements.





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