4.Time Series

Question 1

4 reasons to study time series data

Answer 1

1. to obtain a concise description of the features of a particular time series
2. to construct a model to explain the time series behavior in terms of other variables
   and to relate the observations to some structural rules
3. to use the knowledge gained from the results of 1 and 2 to forecast the future
   behavior of the time series based on our knowledge of the past
4. to control the process generating the time series by examining what the outcome
   on the observed data series would be if certain model parameters were changed

Question 2

decomposition

Answer 2

is the process of removing the components from a time series to identify
individual systematic components within the time series