If It Is Desired to Include Marital Status in a Multiple

question 66

Multiple Choice

If it is desired to include marital status in a multiple regression model by using the categories single, married, separated, divorced, and widowed, what will be the effect on the model?

• A) One more independent variable will be included.
• B) Two more independent variables will be included.
• C) Three more independent variables will be included.
• D) Four more independent variables will be included.
• E) Five more independent variables will be included.

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Definitions:

Accounting Equation

The fundamental principle of accounting that states Assets = Liabilities + Equity, which must always be in balance for accurate financial reporting.

Net Income

Net income is the total profit of a company after all expenses, including taxes and operational costs, are subtracted from its total revenue.

Total Liabilities

The sum of all financial obligations a company has to external parties, including both short-term and long-term debts.

Accounting Equation

The fundamental formula in accounting that states assets equal liabilities plus equity (Assets = Liabilities + Equity).