Introduction to Time Series Analysis What is Time Series Analysis? Time series analysis is a statistical method used to analyze time-ordered data points collected at regular intervals. It helps identify patterns, trends, and seasonal effects in data, making it a crucial tool for forecasting and decision-making across various industries. Key Components of Time Series Understanding time series requires breaking it down into its fundamental components: Trend: The long-term movement of data, either upward or downward. Example: Global temperature rise over decades. Seasonality: Regular fluctuations at specific intervals, such as increased retail sales during the holiday season. Cyclicality: Recurrent patterns occurring over irregular periods, such as economic cycles. Irregularity (Noise): Random fluctuations that do not follow a pattern, like stock market crashes. Mathematically, a time series can be represented as: Y t = T t + S t + C t + I t Y_t = T_t + S_t + C_t + ...
Welcome to A.Alim's Blog