To Effectively Use Nominal Variables in Multiple Regression Analysis, What

question 29

Multiple Choice

To effectively use nominal variables in multiple regression analysis, what do you need to do to the variables?

• A) replace them
• B) organize them
• C) analysis coding
• D) dummy coding

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Definitions:

External Benefits

The positive effects of a production or consumption activity on third parties who are not directly involved in the transaction.

Efficient Level

The optimal point of production or operation where resources are utilized in the most effective manner, without waste, to achieve a desired outcome or maximized benefit.

External Costs

Costs caused by a business activity that are not borne by the business itself, but by other people or the environment.

External Benefits

Benefits from an economic activity experienced by parties not directly involved in the transaction, often leading to positive spillovers in society.