Jorge is using extrapolation to estimate the revenue for August, which is a method of making predictions outside the range of known data points. Graphs and trend lines help to visually compress data and reveal patterns, aiding in making such predictions.
Step-by-step explanation:
When Jorge uses a trend line to approximate the revenue for August, after having plotted the data for the previous months, he is using extrapolation. Extrapolation is a method where we estimate values beyond the range of the collected data points. Since August is after July, which is the last data point we have, estimating the revenue for this month falls outside the known values; hence, the method used is extrapolation, not interpolation, which is used for estimating values within the range of data.
Graphs aid in displaying data graphically and can compress lots of data into a visual form that makes it easier to observe relationships and numerical patterns. By using a trend line, Jorge can make predictions based on the trend he observes from the earlier months' data. However, it's important to remember that extrapolation can introduce more uncertainty in predictions compared to interpolation, because it assumes that the established trend will continue outside the range of known data.