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 :-Read More

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