Business

` Analytics
Time Series Forecasting
 What is Forecasting?

• It is a technique of predicting the future

based on the results of previous data. It
involves a detailed analysis of past and
present trends or events to predict
future events.

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 Significants Benefit

Better utilization of resources.

Formulating business plans.

Enhance the quality of management.

Helps in establishing a new business model.

Helps in making the best managerial decisions.

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methods are based on methods depend wholly on
emotions, intuitions, mathematical or quantitative
judgments, personal models. 
experiences, and
opinions

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 Definition of Time Series Forecasting

Time Series is generally data

that is collected over time and
is dependent on it. 

Time series forecasting is the use of a

model to predict future values based on
previously observed values.

Depending on the frequency, a time series can be of yearly (ex: annual

budget), quarterly (ex: expenses), monthly (ex: air traffic), weekly (ex:
sales qty), daily (ex: weather), hourly (ex: stocks price), minutes (ex:
inbound calls in a call canter) and even seconds wise (ex: web traffic).
 Forecasting Action in Business

If you’re a 

retailer
• forecast daily sales volumes to guide decisions around inventory and better timing
for marketing efforts.

financial industry

• forecast stock prices for more effective investment decisions

agricultural company

• agricultural company

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 Components of a Time Series Forecasting

Increasing or
decreasing Seasonality Size of dataset
trends
 general direction in
which something is Any predictable
developing or change or pattern in
changing. a time series that
recurs or repeats
over a specific time
period

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 What are the Best Tools for Forecasting?

Demand Works  QuickBooks Tableau

• for the • a platform to • useful for

management of generate the predicting
the inventory, trend, and Business
capacity, sales forecasting Intelligence 
and operational reports that goals
planning further helps in
improving the
financial and
budgeting
services.

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 Forecasting in Phyton

Creating a time series model in Python allows you to capture more of the
complexity of the data and includes all of the data elements that might
be important. It also makes it possible to make adjustments to different
measurements, tuning the model to make it potentially more accurate.

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