Question: You are asked to estimate a model using monthly U.S. data. The data exhibit strong seasonality as a result of Christmas. What type of seasonal

You are asked to estimate a model using monthly U.S. data. The data exhibit strong seasonality as a result of Christmas. What type of seasonal model should you use to capture the seasonal effects and the holiday effect of Christmas? Use a model with monthly seasonal dummy variables Use a model with twelve seasonal dummy variables and a set of monthly variables whose value is equal to the number of days in each month that the holiday affects Use a model with twelve seasonal dummy variables, a complete set of holiday dummy variables, and a complete set of trading day variables

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