Cypress River Landscape Supply is a large wholesale supplier of landscaping materials in Georgia. Cypress Rivers sales
Question:
a. Suppose Cypress River estimates a linear trend without accounting for this seasonal variation. What effect would this omission have on the estimated sales trend?
b. Alternatively, 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?
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Related Book For
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
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