Data Extrapolation
Process of estimating a value that is outside the range of given data points. In the process of extrapolation, known data is used to predict the outcome of the extrapolated data points. For example weather stations use previous data to predict/extrapolate the future weather.

Further Application: The Case Study

Companies use data extrapolation to predict future sale trends. They can then use this information to change supply and prices to favor those trends and therefore maiming their profits. Lets say that a supermarket in Mexico have begun to sell more eggnog in the past 3 years during Christmas. The supermarket would then use data extrapolation to predict that the demand for eggnog could have increased again and they would therefore increase the supply of eggnog. The increased demand could be due to increase in the population or a trend in the consumption of eggnog, possibly as Mexican-Americans could be returning to Mexico from US.

Sources:


http://www.businessdictionary.com/definition/extrapolation.html

https://ece.uwaterloo.ca/~dwharder/NumericalAnalysis/06LeastSquares/extrapolation/complete.html