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Consider the regression model Salary= B1+B2WorkExperience+u Suppose we have another variable Region which captures where the individuals in our data set live, and Region =
Consider the regression model Salary= B1+B2WorkExperience+u
Suppose we have another variableRegionwhich captures where the individuals in our data set live, and
Region = 1 if they live in the north
Region = 2 if they live in the south
Region = 3 if they live in the east
Region = 4 if they live in the west
We believe thatRegionaffects theinterceptof the linear relationship betweenSalaryandWorkExperience.
If we wish to account for this in our model, how many additional regressors need to be included in our regression model.
A 3
B 4
C 6
D 7
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