Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A) Dummy variables are used to incorporate categorical variables into a regression model.
• B) You should use one fewer dummy variables than are categories for the qualitative variable in question.
• C) It is appropriate to compute a correlation coefficient for the relationship between a dependent variable and a dummy variable.
• D) All of the above are true.

Understand the concept of multicollinearity and its implications on regression analysis.

Acquire knowledge on the use and interpretation of multiple regression analysis including the prediction equation and the significance of the model.

Understand the concept and calculation of F-statistic in multiple regression.

Grasp the geometric representation of multiple regression through regression hyperplanes.

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