Question

Uses for Time Series

Based on what you have learned, think of a use for time series analysis and share it with the class.

Answer 1

Time Series analysis is “an ordered sequence of values of a variable at equally spaced time intervals.” It is used to understand the determining factors and structure behind the observed data, choose a model to forecast, thereby leading to better decision making.

Example:

Imagine the beer market. For every production company, forecasting future demand is prime to revenue sales and bottom-line and for these, scanner data that contains retail purchase information such as price, brand, product size, and amount purchased gathered at the point of purchase is needed. This application of time series to market research and insight aids the objective of determining the effects of sales promotion on beer demand.