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

Number of dummy variables = number of days − 1

In a Given Week, the NYSE (New York Stock Exchange)