Chapter 8

Qualitative Events and Seasonality in Multiple Regression Models

Chapter 8 Preview

When you have completed reading this chapter you will be able to:

• Understand the meaning of “seasonality” in business data.

• Take seasonality into account as a pattern in your models.

• Account for seasonality by using dummy variables.

• Understand the use of dummy variables to represent a wide range of events.

• Modify the Market Share model from chapter 7 for a ­nonrecurring event.

• Use dummy variables to account for seasonality in women’s clothing sales.

Introduction

Most of the variables you may want to use in developing a regression model are readily measurable with values that extend over a wide range and are interval or ratio data. All of ...

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