I am trying to model the temperature function using the following equation:
$T(d)=c_0+c_1 \cos (\frac{2\pi}{365} d)$
Where $d$ is the day of the year, and $T(d)$ is the temperature on that day. I am using SVD to solve for $c_0$ and $c_1$, but I want to increase the accuracy of my solution.
Is there a way to add a new parameter $c_2$ to increase the accuracy of the solution?
Here is the data I'm using:
\begin{array}{l|l} \hline \text { January } & 62^{\circ} \mathrm{F} \\ \hline \text { February } & 67^{\circ} \mathrm{F} \\ \hline \text { March } & 73^{\circ} \mathrm{F} \\ \hline \text { April } & 79^{\circ} \mathrm{F} \\ \hline \text { May } & 86^{\circ} \mathrm{F} \\ \hline \text { June } & 91^{\circ} \mathrm{F} \\ \hline \text { July } & 94^{\circ} \mathrm{F} \\ \hline \text { August } & 94^{\circ} \mathrm{F} \\ \hline \text { September } & 89^{\circ} \mathrm{F} \\ \hline \text { October } & 82^{\circ} \mathrm{F} \\ \hline \text { November } & 72^{\circ} \mathrm{F} \\ \hline \text { December } & 65^{\circ} \mathrm{F} \end{array}
Regarding whether you can add a parameter, you can do what you like. You could add a million parameters if you so wanted. The only limitation is that a good model has only as many parameters as is appropriate to its data, and hence is not over- or underfitted. But you can essentially always grant yourself higher accuracy by including a new parameters in the right way, while keeping in mind that a model with too many parameters may be overfitted and needlessly complex, and hence inappropriate.
A reasonable approach to your problem would be fitting to the data a sine (or cosine) wave in $4$ parameters, amplitude, frequency, and phase offset, and a constant baseline offset
$$y(t)=A\sin(2\pi f t + \varphi)+c$$
Each parameter is justified since essentially no real, measured physical processes are going to have amplitude exactly $\pm1$ (hence $A$), frequency exactly $1$ (hence $f$), or begin exactly at $t=0$ (hence $\varphi$). (A baseline of $0$ may be reasonable but is not the case here.) If you are assuming your data to repeat exactly annually, then that is equivalent to assuming $f=\frac{1}{365.24}\,\text{days}$ (NB: use the tropical [solar] year for this, not the Gregorian [calendar] year or others.)
And your parameter of $c_2$ is the phase offset. It would be strange to assume that it shouldn't be included, unless your process began exactly at $t=0$.