Star Schema

In a Dimensional Data Model, a fact table is the centralized table which is connected to multiple dimensions related to that fact. This type of approach is known as the Star Schema design based on which data warehouse and data marts are built. Since BI takes advantage of data displayed in the form of mutli-dimensional cubes, this star schema approach helps analyze and produce complex reports very easy by slicing and dicing the dimensions of interest.

From the sample diagram shown below, the required Fact 'Loan Amount' can be calculated across various dimensions like state, branch, time, product, loan officer and investor dimensions.

Sample Star Schema Diagram

source: learnbi.com