PPT - Analysis of Time Series, B Com Notes | EduRev

Business Mathematics and Statistics

B Com : PPT - Analysis of Time Series, B Com Notes | EduRev

 Page 1


TIME SERIES ANALYSIS
Page 2


TIME SERIES ANALYSIS
Introduction:
We know that planning about future is very necessary for the
every business firm, every govt. institute, every individual and for
every country. Every family is also doing planning for his income
expenditure. As like every business is doing planning for
possibilities of its financial resources & sales and for maximization
its profit.
Definition: “A time series is a set of observation taken at
specified times, usually at equal intervals”.
“A time series may be defined as a collection of reading belonging to
different time periods of some economic or composite variables”.
By – Ya-Lun-Chau
? Time series establish relation between “cause” & “Effects” . 
? One variable is  “Time” which is independent variable & and the 
second is “Data” which is the dependent variable.
Page 3


TIME SERIES ANALYSIS
Introduction:
We know that planning about future is very necessary for the
every business firm, every govt. institute, every individual and for
every country. Every family is also doing planning for his income
expenditure. As like every business is doing planning for
possibilities of its financial resources & sales and for maximization
its profit.
Definition: “A time series is a set of observation taken at
specified times, usually at equal intervals”.
“A time series may be defined as a collection of reading belonging to
different time periods of some economic or composite variables”.
By – Ya-Lun-Chau
? Time series establish relation between “cause” & “Effects” . 
? One variable is  “Time” which is independent variable & and the 
second is “Data” which is the dependent variable.
We explain it from the following example:
• From example 1 it is clear that the sale of milk packets is decrease 
from Monday to Friday then again its start to increase.
• Same thing in example 2 the population is continuously increase.
Day No. of Packets of milk sold
Monday 90
Tuesday 88
Wednesday 85
Thursday 75
Friday 72
Saturday 90
Sunday 102
Year Population (in Million)
1921 251
1931 279
1941 319
1951 361
1961 439
1971 548
1981 685
Page 4


TIME SERIES ANALYSIS
Introduction:
We know that planning about future is very necessary for the
every business firm, every govt. institute, every individual and for
every country. Every family is also doing planning for his income
expenditure. As like every business is doing planning for
possibilities of its financial resources & sales and for maximization
its profit.
Definition: “A time series is a set of observation taken at
specified times, usually at equal intervals”.
“A time series may be defined as a collection of reading belonging to
different time periods of some economic or composite variables”.
By – Ya-Lun-Chau
? Time series establish relation between “cause” & “Effects” . 
? One variable is  “Time” which is independent variable & and the 
second is “Data” which is the dependent variable.
We explain it from the following example:
• From example 1 it is clear that the sale of milk packets is decrease 
from Monday to Friday then again its start to increase.
• Same thing in example 2 the population is continuously increase.
Day No. of Packets of milk sold
Monday 90
Tuesday 88
Wednesday 85
Thursday 75
Friday 72
Saturday 90
Sunday 102
Year Population (in Million)
1921 251
1931 279
1941 319
1951 361
1961 439
1971 548
1981 685
Importance of Time Series Analysis:-
As the basis of Time series Analysis businessman can
predict about the changes in economy. There are
following points which clear about the its importance:
1.  Profit of  experience.
2. Safety from future
3. Utility Studies
4. Sales Forecasting 5. Budgetary Analysis
6. Stock Market Analysis 7. Yield Projections
8. Process and Quality Control
9.  Inventory Studies
10. Economic Forecasting
11. Risk Analysis & Evaluation of changes. 
12. Census Analysis 
Page 5


TIME SERIES ANALYSIS
Introduction:
We know that planning about future is very necessary for the
every business firm, every govt. institute, every individual and for
every country. Every family is also doing planning for his income
expenditure. As like every business is doing planning for
possibilities of its financial resources & sales and for maximization
its profit.
Definition: “A time series is a set of observation taken at
specified times, usually at equal intervals”.
“A time series may be defined as a collection of reading belonging to
different time periods of some economic or composite variables”.
By – Ya-Lun-Chau
? Time series establish relation between “cause” & “Effects” . 
? One variable is  “Time” which is independent variable & and the 
second is “Data” which is the dependent variable.
We explain it from the following example:
• From example 1 it is clear that the sale of milk packets is decrease 
from Monday to Friday then again its start to increase.
• Same thing in example 2 the population is continuously increase.
Day No. of Packets of milk sold
Monday 90
Tuesday 88
Wednesday 85
Thursday 75
Friday 72
Saturday 90
Sunday 102
Year Population (in Million)
1921 251
1931 279
1941 319
1951 361
1961 439
1971 548
1981 685
Importance of Time Series Analysis:-
As the basis of Time series Analysis businessman can
predict about the changes in economy. There are
following points which clear about the its importance:
1.  Profit of  experience.
2. Safety from future
3. Utility Studies
4. Sales Forecasting 5. Budgetary Analysis
6. Stock Market Analysis 7. Yield Projections
8. Process and Quality Control
9.  Inventory Studies
10. Economic Forecasting
11. Risk Analysis & Evaluation of changes. 
12. Census Analysis 
Components of Time Series:-
The change which are being in time series, They are
effected by Economic, Social, Natural, Industrial &
Political Reasons. These reasons are called components
of Time Series.
? Secular trend :-
? Seasonal variation :-
? Cyclical variation :-
? Irregular variation :-
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