What time zone is the 'activity by day of week' report based on?

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My 'activity by day of week' report says that 1pm is the time when most traffic is on my site. However, I'd like to understand which what time zone this is based on? Can anyone help?
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Michael
The program converts time in log files to the local time zone by default. You can change the time zone settings in Options > Analysis > Date & Time.