Please answer this question and provide explanation. Thank you. Have a nice day.
ID: 3320062 • Letter: P
Question
Please answer this question and provide explanation. Thank you. Have a nice day.
Page Loads 7000 6000 5000 4000 3000 2000 1000 The web page loads by day form a time series. Which regression model will fit the data best? constant+trend constant+trend+7 indicator variables for each day-of-the-week. constant+trend+6 indicator variables for each day-of-the-week but one. constant+trend+day-of-the-week In math notation, "constant +trend+7 indicator variables for each day-of-the-week" means the regression equation is y-hat = bo + bix + b2X1 + + bx, .Explanation / Answer
From the graph, there exists seasonality in the dataset.
The period of seasonality is of 1 week.
Since there are 7 days in a week we need (7 -1) = 6 indicator
variables
Hence, in the regression model we need constant, trend and
6 indicator variables. (Ans).