All,
Looking for some help in excel.
Trying to do an interpolation model on returns based off of volume.
Pretend I'm selling 3 widgets with a return of 4.402% and when I sell 4 widgets I get a return of 26.626%. How can I interpolate the data in excel to give me 3.25, 3.875, etc.
I've tried scouring the internet, but the best answers I've received are to use the forecast / trend formulas..
Any thoughts?
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Either this is a fantastically simple question, or you're leaving out information.
Just in case it's fantastically simple, think back to 8th grade Algebra, and "y = mx + b". If you're trying to do a linear interpolation, what you need to find is the slope, which as we all remember, is "(y2 - y1) / (x2 - x1)", and y-intercept. Since you're trying to solve for "% return" we know that "# of widgets" is your dependent variable.
Now, we calculate the slope: (26.626% - 4.402%) / (4 - 3) = 0.22224 And now we calculate the y-intercept: 26.626% = (0.2224)*(4) + b -> b = -0.6227
And here we have your linear interpolation equation: y = 0.22224*x - 0.6227 which will output a return for any number or fraction of widgets you can imagine.
Does that solve your problem? Or did you leave out some information about the widgets and/or model constraints or something? I'm fairly certain I'm missing something here.
Lineint function
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