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:

Probabilities

The likelihood or chance of different outcomes occurring, based on a scale from 0 to 1, where 0 means the outcome is impossible and 1 means the outcome is certain.

Responses

The set of data or answers collected from subjects in an experiment or survey.

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about the properties of a population.

Significance Level

A threshold used in hypothesis testing that determines the probability at which the null hypothesis is rejected in favor of the alternative hypothesis.