Which analysis provides insight into year-to-year performance trends?

Linear trend analysis is the correct choice because it specifically focuses on identifying and illustrating year-to-year performance trends over time by plotting the data points on a graph and applying a linear function to demonstrate how values change consistently. This type of analysis effectively highlights patterns, whether they show growth, decline, or stability, allowing businesses to assess their performance trends over a defined period.

By using linear trend analysis, a company can make informed decisions based on observed historical performance, which is essential for future planning and forecasting. It simplifies complex information and helps stakeholders understand whether the overall direction of a company's metrics, such as revenue or expenses, is trending upward or downward.

Other analysis types may not focus explicitly on year-to-year trends. For example, ratio analysis examines the relationships between different financial metrics but doesn’t necessarily illustrate performance trends over time. Base year analysis compares a base year's performance to subsequent periods, which is useful for making relative comparisons but does not provide a continuous view of trends. Projected analysis estimates future performance based on assumptions and forecasts, which is valuable for predicting future outcomes but does not look back at historical year-to-year changes as linear trend analysis does.