How Many Indicator Variables Are Required If There Are P

question 32

Multiple Choice

How many indicator variables are required if there are p seasons in a time series and you are forecasting with a seasonal regression model?

• A) p − 1
• B) p
• C) p + 1
• D) p + 2

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Definitions:

CCA Rate

Capital Cost Allowance rate, used for tax purposes to determine the yearly depreciation of tangible property.

Maintenance

The process of preserving or keeping equipment, systems, or facilities in effective operating condition through routine checks and repairs.

Range Cylinder

Refers to a component in hydraulic or pneumatic systems that determines the range of movement or force exerted by the system, often by specifying the maximum extendable length of the cylinder.

Yoke Bar

A component in mechanical systems used to connect two moving parts, such as in the suspension or driveshaft of a vehicle.