How Can We Use a Nominal Level Variable Like Region

question 7

Essay

How can we use a nominal level variable like region (East, West, South, and Midwest) in a regression analysis? How would you manipulate the variable for inclusion in the regression equation?

---

Definitions:

Cash Dividends Payable

A liability on the balance sheet indicating the amount of dividends the company has declared but has not yet paid to shareholders.

Declaration Of Cash Dividends

The announcement by a company's board of directors of a payment of cash dividends to shareholders.

Paid-In Capital

The total amount of money or value that shareholders have invested in a company through the purchase of its stock.

Retained Earnings

The part of a company's earnings that is reserved or saved, instead of being distributed as dividends to its shareholders.