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October 31, 2014

Homework Help: Economics

Posted by Devin on Tuesday, January 29, 2008 at 11:16pm.

In a regression analysis, suppose there is, in fact, no seasonal pattern to sales, and the trend line is estimated using dummy variables to account for seasonality. What effect would this have on the estimation?

My guess is that it wouldn't affect the estimation....am I correct or missing something?

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