Friday, October 10, 2008

Time Series and its importance for business

Q: - What is the time series? What is the main importance of time series? What are its essential elements?

Ans: - Definition of time series:-

The set of data depend on time is called time series. If any data is collected on base of time and make a series that series is called time series .

Importance of Time series:-

There are many benefits of time series which can be written by us for business purposes

♠ Helpful for study of past behaviour

Time series are very helpful in study of past behaviour of business .On this basis , we can invest our money in that type of business. It is duty of businessman to make time series of past sale or profit and see what is the trend of sale or profit in that type of business.

♠ Helpful in forecasting

Forecasting is science of estimation. Today is the day of competition so if you have to win from competition then you must learn this science , this science can be utilized if we make time series and on the basis we can read the history and then we can decide what happen in future . Suppose if we can make the time series of past strategy of our competitor then on this basis we can estimate future strategy of our competitor and on this base we can change our strategy for defeating our competitor.

♠ Helpful in evaluating the achievements:-

Time series is an equipment in your hand on this basis you can evaluate your business achievements if you did good , your performance shows your good face in the time series by up-word trend of your performance. If your business performance is very bad then you can make new policies to stable your business.

♠ Helpful in comparison:-

If we can calculate our two or more branches time series then we can compare the performance of our branches. On their performance we can give them rewards.

♠ Essential of Good time series:-

1. Data must be for a sufficient period
2. Equal time gap
3. constant or normal period.
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