If we want to measure the seasonal variations on stock market performance by month,we would need:

Name: If we want to measure the seasonal variations on stock market performance by month,we would need:
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Quizplus · Accepted Answer

To measure seasonal variations by month, we would need 11 indicator variables due to the principle of dummy variable trap, where one category is omitted to avoid multicollinearity. With 12 months, using 11 dummies allows the omitted month to serve as the baseline.

If We Want to Measure the Seasonal Variations on Stock