A seasonal binary (or indicator or dummy) variable, in the case of monthly data,
A) is a binary variable that take on the value of 1 for a given month and is 0 otherwise.
B) is a variable that has values of 1 to 12 in a given year.
C) is a variable that contains 1s during a given year and is 0 otherwise.
D) does not exist, since a month is not a season.
Answer: A
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Holding demand constant, a reduction in supply leads to
A) lower prices and higher quantity demanded. B) lower prices and lower quantity demanded. C) higher prices and higher quantity demanded. D) higher prices and lower quantity demanded.
Which of the following is true of the Federal Reserve System? a. It is one central bank located in Washington, DC
b. It was created just before World War II. c. All Federal Reserve banks are required to also become state banks. d. With the formation of the Fed, the power to issue bank notes was taken away from national banks and turned over to the state banks. e. It was notably unsuccessful in averting the Great Depression.
Government spending is projected to rise over the next few decades. Three of the most important reasons are spending on Social Security, Medicare, and healthcare
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown of average costs for a typical firm. If this industry consisted of one firm producing 1,000 units and one firm producing 500 units:
A. the larger firm would earn higher profit than the smaller firm, but they could both survive indefinitely. B. there is no way to predict which firm would have a competitive advantage. C. the larger firm probably would be forced out through price competition. D. the smaller firm probably would be forced out through price competition.