If a Categorical Independent Variable Contains 2 Categories,then _____ Dummy

question 202

Multiple Choice

If a categorical independent variable contains 2 categories,then _____ dummy variable(s) will be needed to uniquely represent these categories.

• A)1
• B)2
• C)3
• D)4

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Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Losses

Reductions in asset value, profit, or revenue, often indicative of a company's underperformance or adverse events.

Sole Proprietorship

A form of business in which an individual pursues business for a profit.

Small Business Ownership

The operation and responsibilities of running a small-scale business, usually characterized by limited revenue and personnel numbers.