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Q7: Monthly Dummy, Event Dummy, and Trend Please use EZ data, see Q6 for description of the data file. 1. (1 point) Please generate (in

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Q7: Monthly Dummy, Event Dummy, and Trend Please use EZ data, see Q6 for description of the data file. 1. (1 point) Please generate (in total 12) dummy variables, called monthly dummy, for January, February,... and December. Denote themD1, D2, . . ., D2. Also generate the linear trend variable called trend. Hint: the commands to generate January dummy and trend are gen D1 = (month=="JAN") gen trend = _n Note JAN are uppercase letters. Stata is case-sensitive. report the regression uclms = Bo + BID1 + . . . AID11 + B12trend + u. Please interpret Bo, B1, 12. Is there a trend in uclms? Note we use only 11 monthly dummies to avoid dummy variable trap. 3

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