Forecasting
Forecasting
The terms forecasting and prediction are similar but not identical.
With these definitions, we can now appreciate why weather forecasting is not called weather prediction:
Forecasting application steps
Column C contains the predicted values.
When we create a forecast, Excel creates a new worksheet that contains both a table of the past data values and the predicted (future) data values.
Line Chart
Additional Forecast Settings
Even though linear regression is the most common and the most reliable way of modeling prediction,
Confidence Interval
Confidence Interval
Let ́s take as an example the prediction that the forecast gives us for the month of January 2023.
Graph the Data
Benefits of line charts:
Column Chart
Benefits of column charts:
The Forecast Sheet procedure gives us the opportunity to select between a Line Chart and a Column Chart.
Column chart
Customize the Graphics
To change the names of the columns:
As we can see, in the line chart that we created the horizontal axis labels are not the appropriate ones.
To change the data series:
Further customizing the line chart, we can add x and y axis labels.
To calculate the forecast difference:
Creating a Clustered Column Chart
To create a clustered column chart:
The chart that visualizes the comparison of the past tourist visits data and the forecast tourist visits data values is the following.
Stacked Column chart
It is not always the case that the recommended charts are suitable for the visualization of our information.