In regression analysis, we can use 11 indicator variables to represent 12 months of the year.

Name: In regression analysis, we can use 11 indicator variables to represent 12 months of the year.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

We can use 11 indicator variables to represent 12 months of the year by selecting one month as a reference and using indicator variables for the remaining 11 months. This is known as the "dummy variable trap" and allows us to incorporate seasonality into our regression analysis.

In Regression Analysis, We Can Use 11 Indicator Variables to Represent