Incorporating a Categorical Variable with 5 Possible Categories into a Multiple

question 21

Short Answer

Incorporating a categorical variable with 5 possible categories into a multiple regression model requires the use of __________ dummy variables.

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Definitions:

Car's Stereo

An audio system installed in an automobile that plays music or broadcasts from various sources, enhancing the driving experience.

Music Fan

An individual who has a strong interest or enthusiasm for music and its various genres, often following artists and attending concerts.

Side Effects

Unintended consequences of an action or decision that can be either beneficial or harmful.

Settlement Cost

The expenses incurred in the resolution of a dispute, transaction, or litigation, including legal fees, negotiation costs, and any payments made to settle the case.