Multiple Choice
Which of the following statements is correct?
A) The number of dummy variables that must be added to a regression model is one less than the number of categories for a qualitative independent variable.
B) A dummy variable is incorporated into a regression model if the dependent variable is qualitative.
C) Including a dummy variable into a regression model will simplify the regression results and help people to interpret the meaning of the regression parameters.
D) The number of dummy variables that must be added to a regression model is one more than the number of categories for a qualitative independent variable.
E) All of these.
Correct Answer:
Verified
Correct Answer:
Verified
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