A Qualitative Variable Which Represents Categories Such as Geographical Territories

question 4

True/False

A qualitative variable which represents categories such as geographical territories or job classifications may be included in a regression model by using indicator or dummy variables.

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Definitions:

Probability

A measure of the likelihood of a specific outcome, event, or result occurring.

Insurance Premium

The amount of money an individual or business pays for an insurance policy, which provides financial coverage against specific risks.

Expected Income

The amount of money one anticipates earning over a specific period, considering various factors like salary, investments, and other income sources.

Probability

An indicator of the probability that a particular event will happen, denoted as a value ranging from 0 to 1.