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Essay text:
The series value X is plotted on the vertical axis and time t on the horizontal axis. Time is called the independent variable (in this case however, something over which you have little control).
There are two kinds of time series data:
1. Continuous, where we have an observation at every instant of time, e.g. lie detectors, electrocardiograms. We denote this using observation X at time t, X(t).
2. Discrete, where we have an observation at (usually regularly) spaced intervals. We denote this as Xt.
3.
Examples
Economics - weekly share prices, monthly profits
Meteorology - daily rainfall, wind speed, temperature
Sociology - crime figures (number of arrests, etc), employment figures
Time series contain at least one of the following four components:
1...
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