Overview
Time series analysis involves analyzing data points collected or indexed in time order. The goal is to extract meaningful statistics and characteristics of the data, often to predict future values.
Key Components
- Trend: Long-term increase or decrease in the data.
- Seasonality: Periodic fluctuations that repeat over a specific period (e.g., daily, weekly, yearly).
- Cyclical: Fluctuations that are not of a fixed period.
- Noise: Random variation in the data.
Use Cases
- Stock market analysis.
- Weather forecasting.
- Inventory management.