What is called a trend line
- Interpreting a trend line (video) | Khan Academy
- Updated Nov 16, What Is a Trendline?
- Excel Charts - Trendlines
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- You can collect data for a series of trials where a dog is shown a treat of a given size and you measure the rate at which it wags its tail.
- Trendline Definition & Example
- Trend line (technical analysis) - Wikipedia
- If we could find the equation of this line, we could use it to predict the low temperature when someone gives us the high temperature.
I will try to explain the differences and when to use them. On Tableau, you can download the Superstore sample dataset and put sales on Columns and Profit on the Y-axis to follow along.
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If we choose the circle under the marks card we get a scatter plot. Here this would try to see the relationship between sales and profit.
The linear graph can sometimes be unrealistic, for example, the y-intercept is negative. Linear trend line. The name derives from its shape, an exponential or rapid increase. A logarithmic equation is similar to the inverse of the exponential function.
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Here Ln represents the natural logarithm or log base e. The graph tends to rise very quickly and then trails off slowly rising as the x value increases.
6 Scatter plot, trendline, and linear regression
The power trend line does not have a constant and is dependant on the x-axis value and a constant determined by tableau. It may look similar to the linear function in the graph, but it is created from a completely different function. The R squared value is always between 0 and 1 and represents the explained variation divided by the total variation.
Going through the iterations of the different trend lines using the superstore data between profit and sales I found the power trend line to have the highest R squared value. Of course, I would not recommend using the trend line that has the highest R-value all the time, as visualisation is the most important thing to consider.
If it looks nice and matches up with a lot of the points and is easy to comprehend then use it. Also, use some intuition.
If the graph looks like it slopes upwards in a curve fashion then a linear trend line is not the best to use. However, a linear trend line does have the advantage to be able to clearly see whether the trend is upwards or downwards sloping, and what the magnitude is easier than other lines. P-Value There is P or probability value assigned to the trend line.
The lower this value the better.
6.1 Creating a scatter plot in Excel
Without going into stats too much, Tableau is computing how well your trend line fits the model based on an F statistic with a hypothesis that an intercept only model is accurate. If P is low we reject this and fail to reject or accept, but we can never truly accept a hypothesis the alternate option that this trend line accurately describes the what is called a trend line. A low p value may be a bad thing as the line may not be the best model to follow.
Let's look at the scatter plot used in this explanation to show a trend line.
To put it another way, there is a 1-p chance that the coefficient of the trend line is not 0.