In general,the number of dummy variables used to model constant seasonal variation is equal to the number of:
A)Seasons.
B)Seasons minus 1.
C)Seasons plus 1.
D)Seasons minus 2.
E)Seasons divided by two.

Question

Quizplus · Accepted Answer

The number of dummy variables used to model constant seasonal variation is equal to the number of seasons minus 1. This is because if we have n seasons, we only need n-1 dummy variables to capture the seasonal variation, as the nth season can be captured by the intercept or constant term in the model.

In General,the Number of Dummy Variables Used to Model Constant