Financial data analysis Essay Example | Topics and Well Written Essays - 1000 words - 3

Financial data analysis - Essay Example Time series analysis also assist stakeholders and other interested parties in understanding how the various sets of data behave within a given period. Besides, the time series analysis assists in developing a forecasting model, which can be very significant in making projections, planning, and budgeting (Ott & Longnecker, 2010). The process involved restricting the data into the two prices of wheat as stated within the instructions. After which, the correlation function under the data analysis was used in order to identify the correlation coefficient. A descriptive data analysis was also conducted. Besides, the process involved conducting a time series analysis, which eventually contributed to the graph drawn below (Ott & Longnecker, 2010). Ott and Longnecker (2010 also add that even though the process was tedious and very challenging, the following are the findings. The other difficult obtained is that the data used was not graduated in order to ensure that a good fit of data is obtained for the purposes of further analyses. The correlation coefficients and the descriptive statistic components obtained from the data are represented in the following table. The following discussions provide the understanding of the correlation coefficients, covariance, some of the descriptive statistics components, and the time series graph. From the above figure, the correlation coefficient is 0.950684215, which is positive. According to Ott and Longnecker (2010), correlation coefficient range from +1 to -1 depending on the strength and direction of the relationship existing between the variables in question. In this case, the correlation coefficient is 0.95 indicating a strong positive correlation between the prices of the two types of wheat. The following are the time series graphs for each of the type of wheat that is in the question. The two time series are important in establishing a forecasting model for the prices of the two kinds of