Time Series Analysis Defined
Time series analysis is a statistical technique which deals with time series data, or trend analysis. Simply, this type of analysis deals with a series of data points ordered in time. This could either be particular time periods or intervals.
In a time series, time is often the independent variable, with the goal to be to make a forecast for the future. There is no minimum or maximum amount of time that must be included in this analysis, allowing the data to be gathered in a way that provides the information needed by the users.
This statistical technique can be considered in three different ways:
Time series data: A set of observations on the values that a variable takes at different times.
Cross-sectional data: Data of one or more variables, collected at the same point in time.
Pooled data: A combination of time series data and cross-sectional data.
Time Series Analysis is used for many applications, including:
- Sales Forecasting
- Economic Forecasting
- Stock Market Analysis
- Budgetary Analysis
- Inventory Studies
- Workload Projections
In Data Defined, we help make the complex world of data more accessible by explaining some of the most complex aspects of the field.
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