An Actuary Wishes to Predict the Life Expectancy of a Person

question 3

Multiple Choice

An actuary wishes to predict the life expectancy of a person based on several variables.One categorical variable of interest is their relationship status - single,married,divorced,widowed,or common-law.If the actuary wished to include "relationship status" in a regression model,how many indicator variables would he/she need to use in the model?

• A)4
• B)2
• C)3
• D)5
• E)1

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