It Is Possible to Include Nominal Variables in a Regression

question 109

Short Answer

It is possible to include nominal variables in a regression model.This is accomplished through the use of ____________________ variables,also known as ____________________ variables.

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Definitions:

Trend Component

An underlying pattern in a time series data set that shows the direction and pace at which the series values change over time.

Exponentially Smoothed Values

Values obtained using exponential smoothing, a technique to forecast data by giving more weight to recent observations.

Motor Oil Sales

The commercial activity of selling oil used for lubricating the engines of vehicles.

Exponentially Smoothed Sales

A forecasting technique that applies weighting factors which decrease exponentially over time, used to smooth time series data.