Reference lines and bands mark the levels that matter on a chart - a target, a threshold, or an acceptable range - so readers can judge the data against them at a glance.
When the data only means something relative to a benchmark - a sales target, a safety limit, or a normal range - and you want that benchmark drawn right on the chart.
A reference line marks a single value, like a target. A band shades the space between two values, like an acceptable range.
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