With Random Forests, Categorical Variables May Be Used as Independent

question 6

True/False

With random forests, categorical variables may be used as independent or dependent variables and may be coded as characters or as numbers.

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Definitions:

Capital Accumulation

The process of acquiring additional assets or capital goods aimed at increasing productive capacity or wealth.

Labor Productivity Growth

An increase in the output of goods and services per hour worked, which can lead to higher living standards and economic growth.

Real Wage

The purchasing power of wages, taking into account the impact of inflation, indicating how many goods and services wages can buy.

Nominal Wage

The wage or salary that is paid to workers in current dollars, without adjusting for inflation or purchasing power.