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Q. Explain about Time series analysis?
An analysis of relationship between variables over a period of time. Time-series analysis is helpful in assessing how an economic or other variable changes over time. For instance, one may conduct a time-series analysis on a stock, interest rates, sales volumes and quality measurements etc.
Methods for time series analyses can be divided into two classes: frequency-domain methods (spectral analysis and recently wavelet analysis) as well as time-domain methods (auto-correlation and cross-correlation).
How does economic theory contribute to managerial decisions?
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