- Sample Fan Graphs
Fan graphs are used to predict possible results based on past results or experiences. They are very similar to line graphs but unlike the latter, they extend on both sides of the central line.
The central line represents the possibility which is most likely and as the line fans out, the chance of the possibilities recurring lessens. Thus fan graphs are more technically challenging as far as creating them is concerned.
Fan graphs are often used in probability numerical. Apart from this, they are also used by economic or business organizations in order to foresee results and so on. Stock markets also use fan graphs extensively.
Fan graphs must be labeled carefully to ensure that the graph is easy to understand and unambiguous. They are used extensively in financial and monetary predictions including inflation.
The term was coined by the Bank of England in order to make matters of inflation more accessible to the general audience. Thus, fan graphs are extremely graphic and even an amateur can understand the technical implications of a fan graph even though they are difficult to create.
In case of hand drawn fan graphs, since the central line represent the greatest possibility, care should be taken to darken or shade it so that it is distinguished from the rest of the fan.