In General, to Represent a Nominal Independent Variable That Has

question 15

True/False

In general, to represent a nominal independent variable that has n possible categories, we would create n dummy variables.

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Definitions:

Proceeds

The amount of money received from a sale or transaction.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, paid by the borrower for the use of lender’s funds.

Compounded Interest

Interest that is computed on both the original amount of money and the interest it has already earned over past periods, whether it’s a savings or a loan.

Investments

Assets or items acquired with the intention of generating income or appreciating in value over time.