Time series is data of the same entity collected at regular intervals. And the analysis of this is a time series analysis. Here, the time is the independent variable (typically the X-axis), and a characteristic is measured, which forms the dependent variable. The objective of the time series analysis is to understand the pattern of changes over time. And to make projections about the future.
Components of time series analysis
- The long-term tendencies of the data are called trends.
- The repeating feature of the pattern is called seasonality
- The repeating but non-seasonal patterns are called cycles.
- The unpredictable ups and downs of the data is the last component, which is variation.
