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Time series analysis is a statistical technique that focuses on data points collected or recorded at specific time intervals. In the context of evaluating an agency's performance, this method emphasizes year-to-year performance changes. By analyzing this data over time, organizations can identify trends, patterns, and cyclical behaviors in performance metrics. This enables management to assess how performance evolves in response to various factors, such as policy implementations, economic conditions, and operational strategies. The strength of time series analysis lies in its ability to reveal long-term trends and seasonal variations, providing insights essential for informed decision-making and forecasting future performance.

This focus on year-to-year changes helps agencies understand not just their current performance but also how they have improved or declined over time, facilitating a more comprehensive evaluation related to strategic goals and accountability.