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.
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 ...