BUSINESS ADMINISTRATION
BUSINESS ANALYTICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To predict the values of a time series based on one or more other variables
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To analyze the cause-and-effect relationship of a dependent variable with a time series and one or more other variables
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To use present variable values to study what should have been the ideal past values
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To uncover a pattern in a time series and then extrapolate the pattern into the future
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Detailed explanation-1: -1 Answer. The correct answer is option C (to uncover a pattern in a pattern in a time series and then extrapolate the pattern into the future). The basic definition itself says that time series analysis is to understand the patterns in time-based data and forecast the patterns for the future.
Detailed explanation-2: -There are two main goals of time series analysis: identifying the nature of the phenomenon represented by the sequence of observations, and forecasting (predicting future values of the time series variable).
Detailed explanation-3: -Time series analysis helps organizations understand the underlying causes of trends or systemic patterns over time. Using data visualizations, business users can see seasonal trends and dig deeper into why these trends occur. With modern analytics platforms, these visualizations can go far beyond line graphs.
Detailed explanation-4: -A time series is a collection of observations of well-defined data items obtained through repeated measurements over time. For example, measuring the value of retail sales each month of the year would comprise a time series.