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:

Savings Account

A savings account in a bank or financial institution that guarantees the safety of the deposited capital while offering a low interest rate.

Interest Rate

The cost incurred by a borrower from a lender for utilizing assets, shown as a percentage of the principal sum.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment and financial analysis.

Present Value

The current worth of a future sum of money or stream of cash flows given a specific rate of return.