Data requirements for forecasting
To integrate forecasting in your visuals in Power BI, there is one thing you need: data. The option to add a forecast will not even appear in Power BI if your data does not meet the necessary requirements. As well as that, the volume and quality of data can influence the accuracy of the forecast that Power BI will create for you.
First, let's learn a little bit more about forecasting. Then, we can explore the data requirements for forecasting in Power BI and illustrate it with an example.
Why use forecasting?
In general, the purpose of forecasting is to make predictions on what will happen in the future. There can be a myriad of reasons why anyone would want to know what will happen in the future. If we keep it within the scope of business intelligence, it is highly likely that forecasting is used to form actionable insights. For example, if we keep on doing business as usual, how many products should we expect to sell next year? Or...
