Exploring the basic concepts of time series data
A time series represents a chronological sequence of recorded observations, such as monthly revenue, daily stock prices, weekly interest rates, annual profits, and more. The primary objective of time series analysis is to examine the historical progression of a phenomenon over time to anticipate its future trajectory. This predictive insight is derived from the assumption that recurring patterns observed in the past will continue to manifest in the future. We will explore the concepts of predictive forecasting and various forecasting methodologies, providing a detailed description of both.
Understanding predictive forecasting
Predicting the trajectory of variables is immensely significant when it comes to formulating plans and policies for any endeavor. For instance, when planning a company’s production strategy, it isn’t sufficient to merely understand whether the demand for products or services is on the rise or...
