A time series with a seasonal pattern can be modeled by treating the season as a
A)predictor variable.
B)dependent variable.
C)dummy variable.
D)quantitative variable.

Question

Quizplus · Accepted Answer

A seasonal pattern can be modeled by including a dummy variable for each season in the model. The dummy variable takes on the value of 1 for observations in that season and 0 for observations in other seasons, allowing the model to capture the variation in the data due to seasonal effects. Therefore, treating the season as a dummy variable is the best choice.

A Time Series with a Seasonal Pattern Can Be Modeled