If a Qualitative Variable Has C Categories, Then C Dummy

question 83

True/False

If a qualitative variable has c categories, then c dummy variables must be included in the regression model, one for each category.

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Definitions:

Economic Loss

The decrease in financial value or resources due to an event, action, or inaction, encompassing factors such as direct, indirect, and opportunity costs.

Production Costs

Expenses directly related to the creation and manufacturing of a product, including raw materials, labor, and overhead.

Explicit Costs

These are direct, out-of-pocket payments for expenses incurred by a business, such as wages, rent, and materials.

Opportunity Costs

The cost of foregoing the next best alternative when a decision is made to pursue a particular action.