Suppose you are interested in how stock returns differ in different months of the year. You decide
Question:
Suppose you are interested in how stock returns differ in different months of the year. You decide to use dummy variables to examine this difference. If you choose to use 12 dummy variables, what problem will you encounter? What is the solution to this problem?
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If you choose to use 12 dummy variables one for each month of the year you will encounter the dummy ...View the full answer
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Related Book For 
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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