There may be several circumstances where we need to read historical data and to extrapolate this historical data to get an approximate idea of what to expect in the future. These forecasted values can help us in, say, budget planning or even redefining our current strategies.
The forecasting functionality in Tableau uses an built-in statistical model that enables us to estimate future values by extrapolating historical data while also taking trend and seasonality into consideration. Among the various models that are available for forecasting, Tableau uses the exponential smoothing model.
An important point to remember is that there are plenty of external factors that govern the actual data and hence the forecast will give us an approximate idea of what to expect in future. The accuracy of this forecast however will depend on the quality of the historical data.
