If a Qualitative Variable Has 4 Categories, How Many Dummy

question 17

Multiple Choice

If a qualitative variable has 4 categories, how many dummy variables must be created and used in the regression analysis?

• A)3
• B)4
• C)5
• D)6
• E)7

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Definitions:

Inventory Valuation

The method used to assess the cost of unsold goods or materials held by a company, impacting financial reporting and taxation.

Specific Identification Method

a method in inventory management and accounting that tracks the cost of specific items of inventory, often used for unique or high-value items.

Purchase Invoice

A document received by a buyer from a seller, detailing the products or services purchased and the amounts due.

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs expected to be incurred in completing, transporting, and selling it.