What does a trendline show?

A trendline is a powerful visual tool used in data analysis that illustrates the general direction or pattern of data points plotted on a graph over time. By connecting various data points, a trendline helps identify underlying trends that can indicate increases, decreases, or stable conditions in a dataset. This makes it particularly useful for forecasting future trends based on historical data.

The trendline does not represent a simple average of data points, the maximum value, or the variance, but rather focuses on the overarching direction in which the data appears to be moving. This insight can be crucial for making informed business decisions or predictions based on historical performance. Therefore, choosing the option that highlights the general direction of the relationship of points over time accurately reflects the purpose and function of a trendline in quantitative analysis.