12.2 Applications

Applications of Time Series

Time-series analysis is used in the following:

  • Economic forecasting
  • Stock-market analysis
  • Demand planning and forecasting
  • Anomaly detection
  • And much more

Economic Forecasting

Macroeconomic predictions:

  • World Trade Organization does time series forecasting to predict levels of international trade.
  • Federal Reserve uses time-series forecasts of the economy to set interest rates.

Example 1 - Example 2

Demand Forecasting

Used to predict demand, both overall and at more granular levels

  • Amazon and other e-commerce companies use time-series modeling to predict demand at a product-geography level.
  • Helps meet customer needs (fast shipping) and reduce inventory waste.

Example 3 -

Anomaly Detection

Particular kind of time-series analysis for detecting anomalies in time series

  • Widely in manufacturing to detect defects and target preventive maintenance
  • Now, with new IoT devices, techniques spreading to other machinery-heavy industries, such as petroleum and gas

Example 4 Example 5

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