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Yep , makes perfect sense. Thanks David

follow up: nevermind, I just got to the next couple minutes of the video where we do a numerical example and the model is corrected to only use 3 variables. All good.

Hi, I was just watching the video for Diebold chapters 5 and 6 and I am struggling with the seasonality portion. In the example, we consider the case of using dummy variables to indicate the 4 quarters of the year - such that we have D1, D2, D3, and D4. However, by including 4 dummy variables...