Polynomial Trending

AAA

DEFINITION of 'Polynomial Trending'

A type of trend that represents a large set of data with many fluctuations. As more data becomes available, trends often become less linear and a polynomial trend takes its place. Graphs with curved trendlines are generally used to show a polynomial trend.

INVESTOPEDIA EXPLAINS 'Polynomial Trending'

For example, polynomial trending would be apparent on the graph that shows the relationship between the profit of a new product and the number of years the product has been available. The trend would likely rise near the beginning of the graph, peak in the middle and then trend downward near the end. If the company revamps the product late in its life cycle we'd expect to see this trend repeat itself. This type of chart, which would have several waves on the graph, would be deemed to be a polynomial trend.

RELATED TERMS
  1. Regression

    A statistical measure that attempts to determine the strength ...
  2. Trendline

    A line that is drawn over pivot highs or under pivot lows to ...
  3. Life Cycle

    The course of events that brings a new product into existence ...
  4. Rescaled Range Analysis

    A statistical analysis of a time-series of financial data that ...
  5. Statistics

    A type of mathematical analysis involving the use of quantified ...
  6. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified ...
Related Articles
  1. Peak-and-Trough Analysis
    Active Trading

    Peak-and-Trough Analysis

  2. Where Top Down Meets Bottoms Up
    Retirement

    Where Top Down Meets Bottoms Up

  3. Using Normal Distribution Formula To ...
    Investing Basics

    Using Normal Distribution Formula To ...

  4. Can Investors Trust Official Statistics?
    Economics

    Can Investors Trust Official Statistics?

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center