What is the main objective of time series analysis?

The main objective of time series analysis is to identify trends and seasonal patterns over time. This analytic approach specifically examines data points collected or recorded at specific time intervals to discern underlying structures and behaviors.

Understanding trends is crucial because it helps analysts see long-term movements in the data, which can inform forecasting and guide business strategy. Seasonal patterns reveal periodic fluctuations that occur at regular intervals, which can be essential for businesses in planning their operations, inventory, and marketing strategies effectively.

While collecting data, focusing on data visualization techniques, or comparing different datasets are important aspects of data analytics, they do not capture the essence of what time series analysis aims to achieve. The core of this analysis is fundamentally about understanding how data changes over time, providing insights that assist in making predictions and informed decisions based on historical information.