Extrapolation Formula Excel Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
Suppose that the value of the certain variables is given below in the form of (X, Y): (4, 5)(5, 6). Based on the
above information, you are required to find the value of Y(6) using the extrapolation method
Variables Value
X1 4.00
Y2 6.00
Y1 5.00
X2 5.00
Y3 7.00
Mr. M and Mr. N are students of 5th standard and they are currently analyzing the data given to them by
their math’s teacher. The teacher has asked them to compute the weight of student whose height will be
5.90 and has informed that the below set of data follows linear extrapolation.
X Height Y Weight
X1 5.00 Y1 50
X2 5.10 Y2 52
X3 5.20 Y3 53
X4 5.30 Y4 55
X5 5.40 Y5 56
X6 5.50 Y6 57
X7 5.60 Y7 58
X8 5.70 Y8 59
X9 5.80 Y9 62
X10 5.90

Y(5.90)/Y10 65.00
Mr. W is executive director of the company ABC. He was concerned with the sales of the company
being following a downward trend. He has asked his research department to produce a new product
which shall follow increasing demand as and when the production increases. After a period of 2 years,
they develop a product which faced increasing demand.

Produced Demanded
X (Production) Y (Demand)
(units) (units)
X1 10.00 Y1 20.00
X2 20.00 Y2 30.00
X3 30.00 Y3 40.00
X4 40.00 Y4 50.00
X5 50.00 Y5 60.00
X6 60.00 Y6 70.00
X7 70.00 Y7 80.00
X8 80.00 Y8 90.00
X9 90.00 Y9 100.00
X10 100.00

      Y(100) /Y10 110.00