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You are asked to estimate a model using monthly Mexican data. The data exhibit strong seasonality as a result of the Easter holiday. What type
You are asked to estimate a model using monthly Mexican data. The data exhibit strong seasonality as a result of the Easter holiday. What type of seasonal model should you use to capture the seasonal and Easter holiday effects? Use a model with monthly seasonal dummy variables Use a model with monthly seasonal dummy variables where one of the dummy variables takes on the value of 1 if Easter falls in that month Use a model with twelve seasonal dummy variables and an extra dummy variable that takes on the value of 1 if Easter falls in that month Use a model with twelve seasonal dummy variables and an extra dummy variable that includes the number of times Easter has historically fallen in that month
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