How Many Additional Dummy Variables Are Required If a Categorical

question 16

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:

Divorce

The legal dissolution of a marriage by a court or other competent body.

Sever

To cut off or divide, often used in legal contexts to discuss separating parts of contracts or severing ties between entities.

Estate in Land

Refers to the degree, quantity, nature, and extent of interest a person has in real property.

Fee Simple

The most complete form of ownership of real estate, giving the holder full possession and control over the property.