If We Include as Many Dummy Variables as There Are

question 29

Essay

If we include as many dummy variables as there are categories,then their sum will be equal to _____.

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Definitions:

Trade-In Allowance

The amount a seller provides to a buyer towards the purchase of a new item by trading in an older model.

Commercial Substance

A concept in accounting indicating that a transaction significantly changes the economic situation of a business, justifying a change in the financial statements.

Accumulated Depreciation

The aggregate depreciation charges applied to a fixed asset from when it first came into operation.

Commercial Substance

A concept in accounting that occurs when the future cash flows or the economic circumstances of a transaction change as a result of the transaction.