What Is The Difference Between Interpolation And Extrapolation

Understand the key distinction between interpolation (estimating within a data range) and extrapolation (predicting outside a data range) in data analysis and modeling.

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Defining Interpolation vs. Extrapolation

Interpolation is the process of estimating a value between two known data points. In contrast, extrapolation is the process of estimating a value by extending a known trend or sequence of data beyond the range of what is actually measured.

Section 2: Core Principles and Reliability

The fundamental difference lies in their reliability. Interpolation is generally considered a safe and reliable estimation because it is bounded by actual, collected data. Extrapolation is inherently more uncertain and speculative because it assumes that the trend observed within the data range will continue outside of it, which may not be the case.

Section 3: A Practical Example

Imagine you have recorded the temperature at 8 AM (60°F) and 10 AM (70°F). Estimating the temperature at 9 AM to be 65°F is an example of interpolation. Using the same data to predict that the temperature will be 90°F at 2 PM is an example of extrapolation.

Section 4: Why This Distinction Matters

This distinction is crucial in fields like science, engineering, and finance. Interpolation is used to fill in missing data points within a data set. Extrapolation is used for forecasting future trends, such as weather patterns or stock prices, but its predictions must be treated with caution due to the potential for significant error.

Frequently Asked Questions

Which is more reliable, interpolation or extrapolation?
Is forecasting always a form of extrapolation?
Can you use a formula for both interpolation and extrapolation?
What is a major risk of extrapolation?