What is "time series analysis"?

Time series analysis is the process of analyzing data points collected or recorded at specific time intervals to uncover patterns, trends, and cycles over time. This analytical approach focuses on how the data changes over time, allowing for the identification of trends, seasonal variations, and potential forecasting of future values based on historical patterns.

In practical applications, time series analysis can be employed in various fields, such as finance for stock price predictions, sales forecasting in business, and analyzing economic indicators. By monitoring how certain metrics evolve over time, analysts can derive meaningful insights that assist in decision-making and strategy formulation.

Other approaches listed, such as comparing different data sets or examining data based on geographical locations, do not capture the essence of time series analysis, which is centered entirely on the temporal dimension of data. Additionally, methods of storing data in databases do not pertain to analysis methodologies but rather to data management and organization. This distinction highlights the specific focus of time series analysis on changes and trends in data over time.