Which of the following states the objective of time series analysis?
A)To predict the values of a time series based on one or more other variables
B)To analyze the cause-and-effect relationship of a dependent variable with a time series and one or more other variables
C)To use present variable values to study what should have been the ideal past values
D)To uncover a pattern in a time series and then extrapolate the pattern into the future

Question

Quizplus · Accepted Answer

The objective of time series analysis is to uncover patterns in a time series data and use it to extrapolate the pattern into the future. Time series prediction based on other variables (option A) falls under the category of regression analysis. Option B describes causal analysis, which involves studying the cause-and-effect relationship between variables. Option C describes backward forecasting, which is not the objective of time series analysis.

Which of the Following States the Objective of Time Series