Unbiased financial chart thread!, page-14

Hi Y

A necessarily technical response to your question.

The charts were produced using Microsoft Excel, which fitted exponential regression trendlines to the raw cash flow data as supplied. Accurate exponential growth rates that apply to each trendline are available within the software by choosing the “Display equation on chart” option.

With that option active, reproduced here is the same chart but with the mathematical equation for each trendline displayed. The respective exponential growth rate for each trendline is given by the exponent of its respective equation.



For Expenses the exponent can be seen as 0.2143x, meaning that cash outflow has shown average growth of 21.43% per (quarterly) period. The Cash Receipts exponent is 0.5138x, indicating average exponential growth of 51.38% per quarter for cash inflow. If you wish these growth rates can be verified by checking where the trendlines intersect with each vertical gridline as you move along from one quarter to the next.

Your question on the fit of individual points to the regression trendlines I think has been adequately answered by Gusman1974.