Question

distinguish between time series analysis and cross-sectional analysis. in order to compare each type of data series we should make and adjustment. Explain

Answer 1

Time series data : That data which is spread over time period like 6 months,
a year , two year etc., generally the data is of equal space period. The series are
used to compare the data of two periods.
Cross-sectional data : The data of a time period is detailed in various individual
or groups with common variables. This type of series is used to compare the
group or a individual item of two period for analysis and decision-making
purpose, like R&D expenses, HR expenses etc.
There always requires to be some adjustments required in each of the series
for making appropriate comparison of two period data because categories of
items in the data keeps on changing as per the dynamic business situations.
Moreover, the inflationary difference between the figures of two period is
always there, which requires appropriate adjustments.