If the Number of Dummy Variables Representing a Qualitative Variable

question 74

True/False

If the number of dummy variables representing a qualitative variable equals the number of categories of this variable, one deals with the problem of perfect multicollinearity.

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Definitions:

Fixed-price Policy

A pricing strategy where a product or service is sold at a specific price that does not change in response to market fluctuations or customer negotiations.

No Haggle

A pricing strategy where the seller sets a fixed price for a product or service, eliminating the need for negotiation.

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A chain of used-car dealerships in the United States known for its no-haggle pricing and comprehensive vehicle inspection process.

Fixed-price Policy

A pricing strategy where a product or service is sold at a consistent price, regardless of market changes.