busterbluth

why did you think seasonality was serial correlation?

seasonality is how e.g. in terms of Sales - sales of say the 4th quarter is significantly higher (due to the holidays) than say in early summer... It relates to value of the "y" variable due to change in the X value (typically Quarters would be dummy variables 1,2,3 and 4th quarters avg sales would be the b0 term).

serial correlation relates not to the value of Sales - but to the error term.

CP