> ## Documentation Index
> Fetch the complete documentation index at: https://nixtla-enterprise-feat-simulate-and-explain.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Understanding forecasts

> Choose the explanation that matches the question you want to answer.

TimeGPT can help you understand both a forecast and the historical information
behind it. Start with the question you are trying to answer.

## What would you like to understand?

<CardGroup cols={2}>
  <Card title="Why is this forecast high or low?" icon="chart-line" href="/forecasting/exogenous-variables/interpretability_with_shap">
    Break one forecast into a starting value and the contribution from each
    input.
  </Card>

  <Card title="What is the forecast sensitive to?" icon="sliders" href="/forecasting/explanation/intervention">
    See how the forecast changes when one input is replaced by its typical
    historical value.
  </Card>

  <Card title="Which signals have been useful historically?" icon="chart-bar" href="/forecasting/exogenous-variables/causal-explanations">
    Rank the features that have been most useful for predicting your target
    over time.
  </Card>

  <Card title="I need more control" icon="settings-2" href="/forecasting/explanation/advanced-explanations">
    Compare relationship analyses, history-weighted forecast allocations, and
    stability across data windows.
  </Card>
</CardGroup>

<Tip>
  If you have a forecast in front of you and are unsure where to start, choose
  [Explain a forecast with SHAP](/forecasting/exogenous-variables/interpretability_with_shap).
</Tip>

## One example, three questions

The guides use the same retail example throughout: a store forecasts daily
demand using price, promotion, and temperature.

<Frame caption="An actual TimeGPT 2.1 forecast and its feature contributions for one promotion day.">
  <img src="https://mintcdn.com/nixtla-enterprise-feat-simulate-and-explain/z3dNEPHA543n_EZj/images/forecasting/explain-retail-shap.png?fit=max&auto=format&n=z3dNEPHA543n_EZj&q=85&s=c7503aaf6697948ea33748331cac455a" alt="A retail-demand forecast beside a bar chart showing price, promotion, and temperature contributions" width="2140" height="953" data-path="images/forecasting/explain-retail-shap.png" />
</Frame>

Each guide looks at this example from a different angle:

| Question                                              | What you learn                                                        |
| ----------------------------------------------------- | --------------------------------------------------------------------- |
| Why did TimeGPT forecast 92 units on this day?        | How price, promotion, and temperature moved that forecast up or down  |
| What changes when an input is set to a typical value? | Which inputs the forecast is most sensitive to over the next 14 days  |
| Which signals have been useful over the last year?    | The relative historical strength of price, promotion, and temperature |

## A simple rule

* Use **SHAP** to explain a forecast you already made.
* Use **intervention** to explore the forecast's sensitivity.
* Use **historical signals** before forecasting or when reviewing your data.

<Info>
  Explanations are a practical way to investigate forecasts and prioritize
  follow-up work. For a major business change, combine them with your normal
  testing and decision process.
</Info>

## Next

Start with [Explain a forecast with
SHAP](/forecasting/exogenous-variables/interpretability_with_shap), or go
directly to [Test forecast
sensitivity](/forecasting/explanation/intervention).
