What best describes a time series?

A time series is best described as a series of figures recorded over a period of time. This definition accurately reflects the nature of a time series, which involves collecting data points at consistent intervals, such as daily, monthly, or annually. Time series analysis is often employed to identify trends, seasonal patterns, and cyclical behaviors within the data, making it crucial for forecasting and various forms of analysis in fields like economics and finance.

In contrast, the other descriptions do not capture the essence of a time series:

• Randomly recorded figures suggest a lack of order and consistency, which contradicts the structured nature of time series data.

• A single observation of figures cannot represent the trends or patterns that arise over time, making it insufficient for time series analysis.

• Qualitative observations pertain to descriptions and characteristics rather than numerical data recorded over time, thus not aligning with the definition of a time series.

Recognizing these distinctions solidifies the understanding of what constitutes a time series and its applications in data analysis.