Percentage change
Calculating percentage change over time is an important analysis technique in time series analysis because it allows us to track the growth rate of a variable (such as sales, revenue, or profit) over time. By calculating the percentage change from one time period to another, we can identify trends, patterns, and anomalies in the data. For example, if we see a consistent positive percentage change in sales over time, we can conclude that our business is growing. On the other hand, if we see a consistent negative percent change, we may need to adjust our business strategies or identify potential issues affecting our sales. Moreover, calculating percentage change allows us to compare the relative change between two time periods, regardless of the absolute level of the variable being measured. This makes it easier to compare and analyze trends across different time periods, which is especially useful for identifying seasonality or cyclical patterns in the data. Overall...
