Statistical forecasting | Statistical charts and diagrams
Fan chart (time series)
In time series analysis, a fan chart is a chart that joins a simple line chart for observed past data, by showing ranges for possible values of future data together with a line showing a central estimate or most likely value for the future outcomes. As predictions become increasingly uncertain the further into the future one goes, these forecast ranges spread out, creating distinctive wedge or "fan" shapes, hence the term. Alternative forms of the chart can also include uncertainty for past data, such as preliminary data that is subject to revision. The term "fan chart" was coined by the Bank of England, which has been using these charts and this term since 1997 in its "Inflation Report" to describe its best prevision of future inflation to the general public. Fan charts have been used extensively in finance and monetary policy, for instance to represent forecasts of inflation. (Wikipedia).
