A dimension is a structure that categorizes facts and measures in order to enable users to answer business questions. Commonly used dimensions are people, products, place and time.[1][2] (Note: People and time sometimes are not modeled as dimensions.)
In a data warehouse, dimensions provide structured labeling information to otherwise unordered numeric measures. The dimension is a data set composed of individual, non-overlapping data elements. The primary functions of dimensions are threefold: to provide filtering, grouping and labelling.
These functions are often described as "slice and dice". A common data warehouse example involves sales as the measure, with customer and product as dimensions. In each sale a customer buys a product. The data can be sliced by removing all customers except for a group under study, and then diced by grouping by product.
A dimensional data element is similar to a categorical variable in statistics.
Typically dimensions in a data warehouse are organized internally into one or more hierarchies. "Date" is a common dimension, with several possible hierarchies: