Analyzing Time Series Data in Python
In this chapter, we will learn how to analyze time-dependent data, also known as time series data. Time series data is data that changes over time; it is a sequence of data points that are recorded over regular time intervals such as hourly, daily, weekly, and so on. When we analyze time series data, we can typically uncover patterns or trends that repeat over time. Time series data has the following components:
- Trend: This shows the overall direction of the time series data over time. This can be upward, downward, or flat.
- Seasonal variations: These are periodic fluctuations that reoccur over fixed timeframes. In simple terms, seasonality exists when a pattern is influenced by seasonal factors, for example, the quarter of the year or the month of the year. Seasonal patterns typically have a fixed period since they are influenced by seasonal factors.
- Cyclical variations: These are fluctuations that happen over time but without a...
