Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assuming that the linear regression model includes an intercept, how many dummy variables representing a qualitative variable should be A. one less than the number

Assuming that the linear regression model includes an intercept, how many dummy variables representing a qualitative variable should be
A. one less than the number of categories of the variable.
B. two less than the number of categories of the variable.
C. the same number as the number of categories of the variable.
D. None of the answers are correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to the Mathematics of financial Derivatives

Authors: Salih N. Neftci

2nd Edition

978-0125153928, 9780080478647, 125153929, 978-0123846822

More Books

Students also viewed these Mathematics questions