Question

4. (Integrating dummy variables) You fit a purely seasonal model with a full set of standard monthly dummy variables to a monthly series of employee hours worked. Discuss how the estimated dummy variable coefficients , Ÿ2, ..., would change if you changed the first dummy variables De = (1,0,0,...) (with all other dummy variables remaining the same) to A. Dí = (2,0,0,...) B. D'' = (-10,0,0,...) C. D}" = (1,1,0,0...)

Answer 1

Ans: You full fita You Set of monthly fit a standard Serpes of purely seasonal model with a monthly dummy variables employee hours worked. A) Di - 2,0,0...) F will change to rest will remain same B) D," = (-10,0,0....) F will change to lo rest will remain same o " = (1,1,0,0....) fa will change to 22 -" - all others will remain same including " Scanned with CamScanner