Other important modeling components


Clustering is necessary for dimension analysis

Read docs related to continuous dimension

Absolute metric

If primary metric is an absolute value (e.g. Revenue), an artificial “N=1” metric is created and used as denominator for first step, to match previous methodology


In ‘Safe Mode’, most correlated dimensions are flagged. Interdependencies between dimensions are tested using Chi-Square and simple business calculation.

Combined dimension

Combined dimension is created by concatenating all clustered dimensions into one “Combined_Dimension”. It is then considered as all other dimensions and it’s contribution in the variation performance is assessed as it is for the other dimensions.


In ‘Safe Mode’, simple check of minimal volume (manually inputted) for given metric in Start and End


‘Out’ segment defined in column ‘Scope’ is excluded from analysis, and simply stacked on Start and End column in waterfall chart


For waterfall analysis, covariance is distributed on each step. User should check that it remains reasonable (typically, <30%)

For Dimension analysis, covariance is not distributed on neither mix nor performance sizing. Hence user should be careful when looking at dimension impact

Read more about Covariance