If a Categorical Independent Variable Contains 4 Categories,then _____ Dummy

question 24

Multiple Choice

If a categorical independent variable contains 4 categories,then _____ dummy variable(s) will be needed to uniquely represent these categories.

• A)1
• B)2
• C)3
• D)4

---

Definitions:

Offshore Oil Wells

Drilling sites located in bodies of water, often at a considerable distance from the shore, that are used to extract oil from beneath the ocean floor.

Oil Refineries

Industrial processing plants where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and jet fuel.

Hurricane Katrina

One of the deadliest hurricanes to hit the United States, causing widespread destruction along the Gulf coast, particularly in New Orleans, in August 2005.

Price Floor

A government-imposed limit on how low a price can be charged for a product, aimed to ensure fair conditions for producers.