I am studying Time series with Regression analysis.
I have data that has seasonality and trend. I am using Dummy variables for seasonality- In this case I am using quarters.
I selected Quarter 1, Quarter 2 and Quarter 3 and obtained the following model:
$ Revenue= \beta_0+\beta_1{X_{1t}}+\beta_2({X_{S1,t}})+\beta_3({X_{S2,t}}) + \beta_4({X_{S3,t1t}})$
Or equivalently:
$ Revenue= \beta_0+\beta_1{X_{1t}}+\beta_2(Qrt1)+\beta_3(Qrt2) + \beta_4(Qrt3)$
However if instead of having the quarterly revenue I have available the monthly revenue how should I analyse this time series?
I am confused regarding this question. I do not understand what is suppose to do, if I have the monthly revenue, I think instead of:
$ revenue= \beta_0+\beta_1{X_{1t}}+\beta_2({X_{S1,t}})+\beta_3({X_{S2,t}}) + \beta_4({X_{S3,t1t}})$, I should have
$ revenue=\beta_0+\beta_1(Jan)+\beta_2(Feb)+\beta_3(March)+\beta_4(April)+\beta_5(May)+\beta_6(JUn)+\beta_7(July)+\beta_8(Aug)+\beta_9(Setp)+\beta_10(Oct)+\beta_11(Nov)$
But I am not really sure what is meant by this question.
Can anyone help me on this?
Thanks
I edited the question to add the following information:
The question is: If I have available Monthly revenue, how should I analise the time series?