Algorithm Analysis is the study of how algorithms perform in terms of time and space efficiency. It helps determine how quickly an algorithm can solve a problem and how much memory it requires. This analysis is crucial for selecting the best algorithm for a specific task, especially when dealing with large datasets. There are two main types of analysis: worst-case and average-case. The worst-case analysis evaluates the maximum time or space an algorithm might need, while average-case analysis considers the expected performance under typical conditions. Understanding these aspects allows developers to optimize their code and improve overall system performance.