Learn the Concept of Time Series in a Better Manner

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What is time series?

Time series is defined as a sequence of data points over a continuous period of time, in a successive order. Time series is essential because it allows one to predict how an asset is going to change over a period of interval and compare the results to other variables as well. One such example of time series in the daily life is the occurrence of ocean tides. These can be predicted by the analyses of its previous data.

Methods of analysis

There are a number of methods through which time series can be analysed. Each has its own benefits and is applicable to certain kinds of data only. Listed below are some of the categories by which time series can be analysed:

  1. Frequency domain methods
  2. Time domain methods
  3. Parametric methods.
  4. Non-parametric methods
  5. Linear
  6. Non-linear
  7. Univariate
  8. Multivariate

Importance of time series

Time series is immensely important for students to learn because it helps them with various aspects. It helps them in the business and various other fields as well. Listed below are some of the benefits that it provides which makes it a really important topic to understand and cope with:

  1. It helps to predict the future based upon the strategy used in the past and the data compiled from it.
  2. It helps to understand the performance of a business in the past and based on that one can decide whether to invest or not.
  3. It helps to assess the business achievements accomplished over time.
  4. Helps to compare.

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