Yvonne Lang, VP of Finance at Digital Components, Inc

question 58

Multiple Choice

Yvonne Lang, VP of Finance at Digital Components, Inc.(DCI) , wants a regression model which predicts the average collection period on credit sales.Her data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and 6%) , and total assets of credit customers (small, medium, and large) .The number of dummy variables needed for "total assets of credit customer" in Yvonne's regression model is ___.

• A)1
• B)2
• C)3
• D)4
• E)7

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Definitions:

Petroleum

A naturally occurring, liquid hydrocarbon found beneath the Earth's surface, often used as fuel and in various industrial applications.

Output Per Million BTUs

A measure of energy efficiency, indicating the amount of output produced for every million British Thermal Units consumed.

World Population

The total number of living humans on Earth at a given time.

Per Capita Energy

The average amount of energy consumed per person within a specific population or area.