Time Series Analysis

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TIME SERIES ANALYSIS
Time series is a set of data collected or arranged in a sequence of order over a successive equal increment of time (Lazim M.A, 2011). Time series also described as a sequence of data within a uniform time interval in the terms of years or months or days or hours and so forth.
Why am I interested in time series analysis?
Time series analysis is a quantitative or statistical technique used to forecast certain set of data over a time frame and can be evaluated for accuracy by applying certain measurement criteria. The application of time series data involves the formulation of mathematical models, which are estimated using significantly large amount of data to mimic the environment under study and therefore, generate the forecast value. Time series analysis and its applications have become increasingly important in various fields of research, such as business, economics, engineering, medicine, environometrics, social sciences, politics, and others.
It is interesting to forecast or in other word to predict the data over certain time interval to provide information for decision making activities, particularly in the area of planning and controlling. Good planning procedure would help to face of the ever-increasing uncertainties in the future. For example, if the value (sales, stock prices, etc) of certain product will fall next year, then the decision maker might want to plan of an action that would help to reduce or minimize losses and vise versa. Time series is used by social scientist in population series such as birth and mortality rate. In medicine, blood pressure over time can be used to evaluate drugs used in reducing the symptoms of hypertension. Time series analysis is also useful for environmental data, for example the tsunami waves, earthquakes, volcanic eruptions, landslides, glacier calving, meteorite impacts, flood and so forth to forecast the potential of the natural disasters to happen again in future. Therefore, prevention and controlling will be able to save lives and avoid tragedies. This would be an honour if I am able to do so.
Time series analysis would be an advantage to monitor the progress achieved, in order to determine whether the set target is currently being realized or can be achieved in the foreseeable future. By using the historical data over time, we will be able to foresee and estimate the future if the most suitable method is used. The objectives of time series analysis are to identify and describe the underlying structure and the phenomenon as depicted by the sequence observations in the series and to determine the best mathematical model to fit the data series and use the model to generate forecast value.

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