Short definition: Trend analysis is a technique used to examine historical data to identify patterns and predict future trends.
Explanation: It involves analyzing data over a period of time to identify any consistent patterns or changes. This information can be used to make informed forecasts about future performance or behavior. Trend analysis can be applied to various aspects of a business, such as sales, costs, market share, and customer behavior.
Example: A retail company might use trend analysis to examine its sales data over the past five years. This analysis might reveal that sales have been increasing steadily, suggesting continued growth in the future.
Additional information (optional): Trend analysis can be conducted using various statistical and graphical tools, such as regression analysis, moving averages, and charts. It is a valuable tool for businesses and investors to anticipate future developments and make informed decisions.