You can control for a potential time-trend in your data by including a _____ in your regression.
A)variable that increases by 1 for each successive time-period
B)binary dummy variable indicating a time-trend
C)lagged dependent variable
D)variable indicating the current time-period

Question

Quizplus · Accepted Answer

Including a variable that increases by 1 for each successive time-period (often referred to as a time trend variable) can control for potential trends over time. This variable can capture any underlying factors that may be affecting the outcome of interest over time. This approach assumes that the trend is linear over time.

You Can Control for a Potential Time-Trend in Your Data