What is Trend Analysis ?
Trend analysis is the process of examining data over a specific period to identify patterns or trends that can indicate potential future outcomes. By looking at how data points have changed historically, trend analysis helps forecast possible future changes and make informed decisions. This method is widely used in various fields such as finance, economics, business, and technology to track performance metrics, identify growth or decline patterns, and predict future behavior. Key Components of Trend Analysis: Data Collection : Gathering historical data relevant to the area being analyzed, such as sales data, stock prices, or climate data. Trend Identification : Observing the general direction—whether upward, downward, or stable. Pattern Recognition : Detecting any regular fluctuations, such as seasonal changes, cyclical patterns, or random irregularities. Forecasting : Using the identified trends and patterns to make predictions about future values or events. Evaluation : Continuously ...