1.2 Objectives of time-series analysis

A major objective is to understand and describe the mechanism that generates the series. Because the observations are dependent, this mechanism can be exploited for:

1.: Description: computing descriptive measures, and above all plotting the series, to characterise its main features.
2.: Explanation: when observations are taken on two or more variables, using the variation in one series to explain the variation in another, for example rainfall and crop yield.
3.: Prediction: forecasting future values from the past of the series.
4.: Control: adjusting a process, especially in quality control in manufacturing, so that it stays on target.

[prev] [prev-tail] [front] [up]

Questions on this section

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