How to seasonally adjust a series
Posted: Mon Mar 08, 2010 4:34 pm
Hello,
I have data on housing starts. I was wondering how I can seasonally adjust this data by using dummy variables.
Do I just create a dummy variable for each month, graph the regression, and then look at the residuals from the estimated regression and the original data?
I have a feeling that I have to add in an intercept of some sort to the residuals in order to complete seasonal adjustment?
Thank you so much in advance.
I have data on housing starts. I was wondering how I can seasonally adjust this data by using dummy variables.
Do I just create a dummy variable for each month, graph the regression, and then look at the residuals from the estimated regression and the original data?
I have a feeling that I have to add in an intercept of some sort to the residuals in order to complete seasonal adjustment?
Thank you so much in advance.