Time series graph

Definition

A time series graph is a graphical representation of data points in chronological order. It helps visualize trends, cycles, and patterns over time.

5 Must Know Facts For Your Next Test

1. A time series graph is useful for identifying trends and seasonal variations in financial data.
2. The x-axis typically represents time intervals, while the y-axis represents the variable being measured.
3. Common applications include stock price movements, interest rates, and economic indicators.
4. Smoothing techniques like moving averages can be applied to time series graphs to highlight trends.
5. Time series analysis often involves decomposing the data into trend, seasonal, and irregular components.

Review Questions

• What are the main components of a time series graph?
• How can smoothing techniques enhance the interpretation of a time series graph?
• Why is it important to use a time series graph for visualizing financial data?

Related terms

Moving Average:

A statistical technique used to smooth out short-term fluctuations and highlight longer-term trends in data.

Seasonal Variation: Regular patterns or cycles in data that occur at specific intervals due to seasonal factors.

Trend Analysis:

The practice of collecting information and attempting to spot a pattern or trend in the data over time.