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:

Union

An organization that represents the collective interests of employees in negotiations with employers about issues such as wages, work conditions, and benefits.

Union Membership

The status of being a member of an organized labor union, which represents workers in negotiations with employers over wages, working conditions, and other employment matters.

Government Workers

Employees who are employed in the public sector, working for government entities at various levels.

Businesses

Entities engaged in commercial, industrial, or professional activities, aiming to generate profits from the goods or services they offer.