Time Series

A time series is a sequence of measurements, typically taken at successive points in time. Time Series Analysis includes a broad spectrum of exploratory and hypothesis testing methods that have two main goals: a) identifying the nature of the phenomenon represented by the sequence of observations, and b) forecasting (predicting future values of the time series variable). Both of these goals require that the pattern of observed time series data is identified and more or less formally described. Once the pattern is established, we can interpret and integrate it with other data (i.e., use it in our theory of the investigated phenomenon, e.g., seasonal commodity prices). Regardless of the depth of our understanding and the validity of our interpretation (theory) of the phenomenon, we can extrapolate the identified pattern to predict future events.

For more information on time series, see the Time Series Introductory Overview.