How Many Additional Dummy Variables Are Required If a Categorical

question 54

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:

Variance

A measure of the dispersion of a set of data points around their mean; it is calculated as the average of the squared differences from the Mean.

Chi-squared Distribution

The Chi-squared distribution is a statistical distribution widely used in inferential statistics, especially in chi-squared tests, described by degrees of freedom.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or parameter.

Student T Distribution

Student's t-distribution is a probability distribution used in statistics, especially for small sample sizes or unknown population variances, providing a basis for the estimation of population parameters.