Dummy variables are used in time-series forecasting models
A)to change the intercept of a regression in selected periods.
B)to account for random variation in the data.
C)to account for seasonal variation in the data.
D)both a and b
E)both a and c

Question

Quizplus · Accepted Answer

Dummy variables are useful to account for seasonal variation in the data by changing the intercept of a regression in selected periods. They are not used to account for random variation in the data.

Dummy Variables Are Used in Time-Series Forecasting Models