Importance of Time Series Analysis

The world of business is turning out to be complicated on a daily basis, and in accordance with the changes in the scenario of global business, the world of academic is also undergoing a change, in terms of coming out with new research ideas in order to combat with the emerging issues in the world of business. The issues appear to be more prominent in the areas of finance and economics, as these are the two areas, which deal with the international relations directly and therefore, they are being affected mostly by their negative consequences. In order to deal with the issues in both of these areas, the regression analysis had been one of the mostly used methodologies. However, the emerging issues are turning out to be so complicated that mere use of regression analysis and establishing causal associations among interplaying factors is not enough. Being faced with this issue, researchers in both of these fields are coming up with modern analysis techniques, which deal with the time series data.

Time series analysis is one of the primary and significant modes of analysis in the domains of finance and economics, as this methodology is used to analyze the behavioral pattern of variables, which vary over a period of time. While going for dissecting the behavioral pattern of the variables, researchers try to look for the behavioral pattern of explanatory and control factors, which also vary over time. Once these two aspects are able to explain the variances of each other, the analysis is said to be successful. For this purpose, there are several tools and techniques, which are used in modern research, namely unit root test, autoregressive conditional heteroscedasticity test, causality test, cointegration test etc. These are the mostly used tools and techniques in the emerging issues of finance and economics. For more information about various aspects of time series analysis, kindly browse through the pages of www.360dissertations.co.uk.

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