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If a Qualitative Variable Has K Levels, the Number of Dummy

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If a qualitative variable has k levels, the number of dummy variables required is


Definitions:

Population Standard Deviation

A measure of the variability or spread in a population data set.

Height of the Curve

In statistics, this typically refers to the peak point of a probability distribution curve, indicating the most probable outcome.

Continuous Random Variable

A type of random variable that can take an infinite number of possible values within a given range.

Normal Distribution

Refers to a probability distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

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