What is a flat file database? How can it be used for forecasting? What is a flat file database? How can it be used for forecasting? Solution When data is stored in an unstructured manner in a file, this file is called a flat file. In order to have access to the data and do necessary manipulations, the entire flat file needs to be loaded into the computer’s memory. So basically flat file databases do not have a structure as present in the case of normal databases. It can be used in data mining and forecasting to read in data which is unstructured and then it can be subjected to statistical analysis to forecast and estimate data points in the future..