Excel Scientific and Engineering Cookbook

Chapter 6. Time Series Analysis

Introduction

Time series analysis is a broad field of study with applications ranging from engineering analysis to socioeconomic forecasting to stock market prediction, among many other applications. You can use Excel to perform many tasks required in time series analysis , such as pre- and post-processing of data, visualizing results, and making forecasts. Excel also offers a Fourier Analysis tool that allows you to transform time series data to the frequency domain (and back) for further analysis. This chapter aims to show you some specific examples of how you can effectively use Excel when analyzing time series data.

There are many time series analysis techniques available, many of which are tailored to specific kinds of time series, so I’m not going to attempt to cover them all. Instead, the examples discussed here serve to show you how you can leverage Excel’s standard functionality to perform some important analysis tasks. Building on the techniques I show you here, you have the ability and power within Excel to devise all sorts of other analysis techniques.

6.1. Plotting Time Series Data

Problem

You need to plot a set of time series data for further analysis.

Solution

Time series charts, such as the one shown in Figure 6-1, are easy to create in Excel.

Select the data series (both x and y values) you want to chart and then press the Chart Wizard button on the Standard toolbar, or select Insert → Chart... from the main menu bar to open the Chart Wizard. ...