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A Decision Maker Is Considering Including Two Additional Variables into a Regression

question 131

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A decision maker is considering including two additional variables into a regression model that has as the dependent variable, Total Sales. The first additional variable is the region of the country (North, South, East, or West) in which the company is located. The second variable is the type of business (Manufacturing, Financial, Information Services, or Other) . Given this, how many additional variables will be incorporated into the model?


Definitions:

Basic Necessities

Fundamental requirements for human survival and wellbeing, including food, water, shelter, and clothing.

Government Transfer

Financial or other resources moved from government bodies to individuals, businesses, or other governments, typically in the form of support or subsidies.

Definitions

Explicit explanations or meanings assigned to words or phrases to clarify their use in context.

Social Policies

Plans and actions undertaken by a government or institution to address social issues and improve the welfare of its citizens.

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