Which of the Following Is Not True of Seasonal Dummy

question 61

Multiple Choice

Which of the following is not true of seasonal dummy variables?

• A)Their values are either 0 or 1.
• B)Their number should be one less than the number of seasons.
• C)They are used to describe the seasonality in quarterly,monthly etc.time series.
• D)Their number should equal to the number of seasons.

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Definitions:

Average Fixed Cost Curve

A graphical representation showing how average fixed costs (costs that do not change with the level of output) decreases as production increases.

Output

The total amount of goods and services produced by an economy over a specific period.

Levels

Levels refer to the different positions or stages in a hierarchical structure or process, indicating varying degrees of magnitude, importance, or progress.

Efficient Scale

The level of production that minimizes long-term average total costs, resulting from economies of scale without incurring diseconomies of scale.