QSO 510 Milestone 2 - The main statistical tool to be used...

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The main statistical tool to be used for this problem is ANOVA and time series data. A time series is a set of ordered observations on a quantitative characteristic of a phenomenon at equally spaced time points. One of the main goals of time series analysis is to forecast future values of the series (Time series analysis accounts for the fact that data points taken over time may have an internal structure (such as autocorrelation, trend or seasonal variation) that should be accounted for (Engineering Statistics Handbook). Firstly the president has suggested that the mean number of sales is increasing over the years which suggest that there is a time trend in the data. Also there is a distinct seasonal variation in the sales figure over 2006 to 2010. All these effects can be estimated using time series techniques. Time series is the only field of statistics where successive observations are considered dependent and it’s obvious that the sales figures of these years are dependent on last year’s figures because the vice-president has himself said that this year’s productions are predicted using last year’s data. Temporal statistical analysis enables you to examine and model the behavior of a variable in a data set over time (ITRC).
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  • Spring '13
  • WenjunGu
  • Statistics, Time series analysis

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