Time-Series Analysis
Statistical method analyzing data over time to identify trends/patterns.
Formula
Trend = (Latest Value − Earliest Value) ÷ Number of Periods
Real World
Retailers like Next use time-series analysis on historical sales data to predict Christmas demand and set stock orders months in advance.
Exam Focus
Always state the limitation — past trends may not predict future outcomes — when using time-series analysis in a decision context.
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