Which chart line represents actual sales and which represents forecasts?
The chart legend distinguishes observed sales from model-generated forecasts by color. The blue line is Unit Sales and the red line is Forecast, so the visual effect of exponential smoothing can be seen as forecasts are added week by week.
Conditions
- The chart is linked to the Excel table containing both actual and forecast columns.
- Colors are assigned consistently in the legend.
Reasoning, step by step
- Look at the chart legend at the bottom of the graph.
- Identify the color associated with 'Unit Sales'.
- Identify the color associated with 'Forecast'.
- Observe how the red line smooths out the fluctuations of the blue line as data is added.
Example
The chart legend labels Unit Sales in blue and Forecast in red. The speaker says that as forecasts are added, they will populate in red on the graph.
Common misconceptions
- Assuming the red line represents the actual data because it is often used for emphasis.
- Confusing the two lines when the forecast initially matches the actual data in the first period.
Watch the explanation
Explore next
Answers are generated from source material and independently checked. Consult the original video or creator if something is unclear.