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Default Excel 2003 drawing Trend lines on a chart for a given set of point

I have encountered a very stupid result while drawing a Trend line on number
of points given on a chart. The stupidity reflects in the resulting equation.
The resulting equation gives rise to Y values, for the same X-values it used
in the first place, very divergent from the Y values that it is supposed to
predict. Has any body encountered this problem before?

What is the algorithm that is used by Excel to draw the Trendlines,any body
could educate me,please?
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beetal
 
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