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Questions : To forecast auto insurance rates, an actuary uses a multiple regression model with dummy variables for territory, driver age and car colour. The

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To forecast auto insurance rates, an actuary uses a multiple regression model with dummy variables for territory, driver age and car colour. The state has 10 territories, 5 driver age groups and 7 car colour groups. Each car is in one and only one territory, falls into a single colour group and each driver is in one and only one age group. How many dummy variables are needed for this regression

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