Question: A marketing manager has developed a regression model to predict quarterly sales of his company's mid - weight microfiber jackets based on price and amount
A marketing manager has developed a regression model to predict quarterly sales of his company's midweight microfiber jackets based on price and amount spent on advertising. An intern suggests that he include indicator dummy variables for each quarter. Complete parts a through c below.
a How would you code the variables? How many dummy variables do you need? What values would they have?
A There should be variable. The values could be for spring, for summer, for fall, and for winter.
B There should be indicator variable for one season. The season chosen does not matter, but it should have a value of for that season and for the others.
C There should be variables. The variables could be spring for spring, for others summer for summer, for others fall for fall, for others and winter for winter, for others
D There should be variables. The variables could be spring for spring, for others summer for summer, for others and fall for fall, for others
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
