What is meant by granularity in data representation?

Granularity in data representation refers to the level of detail or depth represented by the data in a fact or dimension table. It defines the precision of the data and indicates the smallest unit of data that can be represented. For example, in a sales database, granularity could refer to whether the sales data is recorded at the level of individual transactions (high granularity) or aggregated at a monthly level (lower granularity).

When designing databases or data models, understanding granularity is crucial as it influences how accurately the data can reflect the underlying reality of the business process being analyzed. A finer granularity allows for a more detailed view and more complex analysis, while a coarser granularity might lead to a simpler overview but potentially obscure important details.