Data Pre Processing Regression Analysis

Question

I am preparing a regression analysis of sales data and advertisement data. The sales data is from Monday to Sunday, but Sundays have a value of 0 because the store is closed. The advertisement data from Monday to Sunday has values way greater than 0 on Sunday. It is for a Marketing Mix Modeling project.

How can I deal with that? Is that called noisy data or something else? Do I just remove the Sunday altogether?

Thank you in advance for any hints how to research that further.

Use a dummy variable with value 1 for sunday and 0 for everything else. — user2974951, Oct 04 '19 at 12:40
How is a dummy variable going to help in that case? I don't understand. — Moritz Möller, Oct 05 '19 at 16:40
Ok. I found the answer myself. Basically it is a time series analysis and I just need to deseasonalize it. — Moritz Möller, Oct 07 '19 at 05:17
No, a dummy variable will tell the model to treat sundays differently than the other days. — user2974951, Oct 07 '19 at 08:05

score 0 · Answer 1 · answered Oct 07 '19 at 09:06

Use 6 dummies to deal with day-of-the-week and delete any of these indicators if they are not significant. Introduce Holiday indicators allowing for lead , contemporaneous and lag effects. Look at Simple method of forecasting number of guests given current and historical data for more model development strategies.

Data Pre Processing Regression Analysis

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