EViews.com

Hi, I'm doing a study regarding stock market seasonality, specifically the day-of-the-week effect. I'm really new and unfamiliar with using codes in Eviews. I understand I'll have 5 dummy variables, that’s Mon to Fri. My data involves 10years, which gives me 2707 days (sample size). Since I was able to do the assigning of 0s and 1s in excel, I've just entered it manually in Eviews. However, upon entering the equation, I’m getting the error “near singular matrix”. Im not sure if the equation is wrong or I have a problem with the dummy variables.

Can anyone please tell me what specific code/s do I have to input to generate dummy variables automatically? Or what equation do I have to enter when using dummy variables?

Can anyone please help me? Thanks in advance!

You've probably entered the Dummy Variable Trap. Drop either one of the dummies, or the constant from your model.

thanks a lot! :)