As you probably know,in a given week,the NYSE (New York Stock Exchange)is generally open from Monday through Friday.If we wanted to use the multiple regression method with dummy variables to study the impact of the day of the week on stock market performance,we would need ____ dummy variables.
A)5
B)52
C)4
D)3
E)365

Question

Quizplus · Accepted Answer

If we want to study the impact of the day of the week on stock market performance, we would only need dummy variables for the days of the week. Since there are 5 days in a week, we would need 4 dummy variables (one day would serve as the reference category). Therefore, the correct choice is C.

As You Probably Know,in a Given Week,the NYSE (New York