Yvonne Yang, VP of Finance at Discrete Components, Inc

question 8

Multiple Choice

Yvonne Yang, VP of Finance at Discrete Components, Inc.(DCI) , wants a regression model which predicts the average collection period on credit sales.Her data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and 6%) , and total assets of credit customers (small, medium, and large) .The number of dummy variables needed for "sales discount rate" in Yvonne's regression model is ________.

• A)1
• B)2
• C)3
• D)4
• E)7

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Definitions:

Evolution

The method through which various types of organisms are believed to have evolved and varied from their ancestral forms over the earth's history.

Brain-Body Size Ratio

A comparative measure of brain size relative to body size, often used to make inferences about the intelligence or behavioral complexity of an organism.

Humans

The species Homo sapiens, characterized by their ability to use complex language, make tools, and form social structures.

Animal Species

Animal species refers to a group of organisms belonging to the animal kingdom that share common characteristics and genetics which differentiate them from other groups within the same kingdom.