# Hypothetical, Simple Example of Dummy Variables Use in Time

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Intro to TimeSeriesDummy Variables.xls
This workbook contains a simple hypothetical example of the use of dummy variables in time series.

The Sales sheet shows weekly sales of a premium ice-cream
Ice Cream Sales Example                               Regression of Sales on
Coupon Retail Price Intercept
Parameters                                   #VALUE!   #VALUE! #VALUE!
b0                  6000                          #VALUE!   #VALUE! #VALUE!
b1                   -800                         #VALUE!   #VALUE! #VALUE!
b2                  1000                          #VALUE!   #VALUE! #VALUE!
SD(e )                100                         #VALUE!   #VALUE! #VALUE!
Week (t)    Retail Price Coupon  e       Sales
0   \$       4.00        0 #NAME? #NAME?
1   \$       4.00        0 #NAME? #NAME?                              Sales
2   \$       4.00        1 #NAME? #NAME?
3   \$       4.00        0 #NAME? #NAME?    5,000
4   \$       4.00        0 #NAME? #NAME?
4,000
5   \$       4.00        0 #NAME? #NAME?
6   \$       4.00        0 #NAME? #NAME?    3,000
7   \$       4.00        0 #NAME? #NAME?
2,000
8   \$       4.00        1 #NAME? #NAME?                                          12
9   \$       4.00        0 #NAME? #NAME?    1,000
10   \$       4.00        0 #NAME? #NAME?
0           2             8             14
11   \$       4.00        0 #NAME? #NAME?
12   \$       5.00        0 #NAME? #NAME?            0          5             10        15
13   \$       5.00        0 #NAME? #NAME?                                 Week
14   \$       5.00        1 #NAME? #NAME?
15   \$       5.00        0 #NAME? #NAME?
16   \$       5.00        0 #NAME? #NAME?                The Y axis scale is locked down. Double click it and se
17   \$       5.00        1 #NAME? #NAME?                the series disappears.
18   \$       5.00        0 #NAME? #NAME?
19   \$       5.00        0 #NAME? #NAME?
20   \$       5.00        0 #NAME? #NAME?
17
20

ked down. Double click it and set back to Automatic if you change the parameter values and

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