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In General, the Number of Dummy Variables Used to Model

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In general, the number of dummy variables used to model constant seasonal variation is equal to the number of


Definitions:

Automatic Activation

According to Fazio, attitudes that have a strong evaluative link to situational cues are more likely to automatically come to mind from memory.

Moderator Variable

A variable that qualifies an otherwise simple hypothesis with a view to improving its predictive power (e.g., A causes B, but only when C (the moderator) is present).

Improve Prediction

Enhancing the accuracy or effectiveness of forecasting future events or outcomes based on current data or trends.

Simple Hypothesis

A hypothesis stating a direct relationship between two variables, with one variable affecting the other in a straightforward manner.

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