What is the utility of time series analysis?


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  • It helps in understanding past behavior- by observing data over a period of time one can easily understand what changes have been taken place in the past. This analysis will be extremely helpful in predicting the future behavior.
  • It helps in planning future operations- plans for the future can not be made without forecasting events and relationship they will have. Statistical techniques like time series helps to make decision for future.
  • It helps in evaluating current accomplishments.- The actual performance can be compared with the expected performance and the cause of variation analyzed
  • It facilitates comparison– Different time series are compared and important decisions are concluded.

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