Extrapolation is a statistical technique used to estimate unknown values based on known data. It involves extending a trend or pattern observed in a dataset to predict future outcomes. For example, if a company sees a steady increase in sales over several months, it might use extrapolation to forecast sales for the next few months. This method is commonly used in various fields, including economics, science, and engineering. However, extrapolation can be risky, as it assumes that the existing trend will continue unchanged. Factors such as market shifts or unexpected events can lead to inaccurate predictions, making careful analysis essential.