In General, to Represent a Categorical Independent Variable That Has

question 78

Multiple Choice

In general, to represent a categorical independent variable that has m possible categories, which of the following is the number of dummy variables that can be used in the regression model?

• A) (m + 1) dummy variables.
• B) m dummy variables.
• C) (1 − m) dummy variables.
• D) (m - 1) dummy variables.