How Many Binary Variables Are Required to Encode a Person's

question 44

Essay

How many binary variables are required to encode a person's age group as being either young, middle-age or old? What are the variables and what are the meanings of their 0, 1 values?

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Definitions:

Labor-market Discrimination

Differences in pay, employment opportunities, or treatment between workers based on race, gender, age, religion, or other non-skill related factors.

Illegal

Actions or activities that are forbidden by law or statute.

Signaling Theory

A theoretical framework that explains how individuals or entities send signals to convey information about themselves or underlying qualities in situations with information asymmetry.

Productive

Refers to the effectiveness and efficiency with which an individual or a system converts inputs into useful outputs.