1.2 Objectives of Time Series

One of the major objectives of time series is to understand and describe the generating mechanism.
The interesting nature of time series is that the observations are depended and correlated, thus the order of the observations is important.

1.

Description: to compute descriptive majors of a time series, this helps to characterize a time series.

2.

Explanation: when a time series is taken on two or more variable it may be possible to use variation in one time series to explain the variation in the other series.

3.

Prediction: given a time series one may wish to predict the future values.

4.

Control: especially in quality control in a manufacturing process.

Questions on this section

Stuck on something here? Ask below and it stays attached to this topic.