Which of the following are correct?
(A) Time series analysis does not help to understand the behavior of a variable in the past.
(B) Time series predict the future behavior of variable.
(C) Time series helps to plan future operations.
(D) The main aim of the time series analysis is to derive conclusions after arranging the time series in a systematic manner.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (C) and (D) only
A time series is a set of values of a variable arranged in order of time. Its analysis studies the past behaviour of the variable and uses it to forecast and plan.
Checking the statements
(A) Time series analysis does not help to understand the behavior of a variable in the past. — Incorrect. Understanding past behaviour is the first use of time series analysis.
(B) Time series predict the future behavior of variable. — Correct. The trend and seasonal patterns found in the data are used for forecasting.
(C) Time series helps to plan future operations. — Correct. Forecasts are the basis of planning in business and government.
(D) The main aim of the time series analysis is to derive conclusions after arranging the time series in a systematic manner. — Correct. The data are arranged in time order and analysed to draw conclusions.