Which of the following statement(s) mentioned below do/does not specify the concept of time series analysis:-
(A) Time series analysis comprises methods for analysing time series data in order to extract meaningful statistics and other characteristics of the data.
(B) Time series analysis provides good forecasts or predictions of further values of the time series.
(C) The time series analysis does not derive conclusions after arranging the time series in a systematic manner.
(D) The measurement analysis and study of components of time series is called time series analysis.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (C) only
Time series analysis arranges data recorded over time in a systematic manner, studies its components (trend, seasonal, cyclical and irregular variations), draws conclusions from them and uses them to forecast future values.
So time series analysis extracts meaningful statistics from the data, studies its components, draws conclusions from the systematically arranged series and gives forecasts.
Checking the statements
(A) Time series analysis comprises methods for analysing time series data in order to extract meaningful statistics and other characteristics of the data. — Correct. This is what time series analysis does.
(B) Time series analysis provides good forecasts or predictions of further values of the time series. — Correct. Forecasting is one of its main uses.
(C) The time series analysis does not derive conclusions after arranging the time series in a systematic manner. — Incorrect. Drawing conclusions from the systematically arranged series is exactly what time series analysis does.
(D) The measurement analysis and study of components of time series is called time series analysis. — Correct. Studying the components is the core of time series analysis.
The question asks for the statement that does not describe time series analysis, so the answer is the statement that is not true, (C) only.