How Many Additional Dummy Variables Are Required If a Categorical

question 54

Multiple Choice

How many additional dummy variables are required if a categorical variable has 4 levels?

• A) 2
• B) 3
• C) 1
• D) 4

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Definitions:

Mean Squared Error

A measure of the average squared difference between the estimated values and what is estimated, often used in statistics and machine learning to assess the accuracy of models.

Coefficient of Correlation

A statistical measure that indicates the extent to which two variables fluctuate together. A higher coefficient suggests a stronger relationship.

Overall Error

Overall Error encompasses the total inaccuracies or deviations from a standard or expected outcome, combining both systematic and random errors.

Negative Regression Slope

A negative regression slope indicates an inverse relationship between two variables in statistical modeling, where an increase in one variable results in a decrease in another.