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Suppose That We Have a Qualitative Variable Month with Categories

question 71

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Suppose that we have a qualitative variable Month with categories: January, February, etc. How many dummy variables are needed to describe Month?


Definitions:

Competitive Market

A market structure characterized by a large number of firms competing against each other, leading to efficient prices and products.

Resources

Assets, materials, and inputs needed to produce goods and services.

Overallocated

A situation where resources are disproportionately distributed or excessively committed to a particular project or area, potentially leading to inefficiencies.

Production

Production is the process of creating goods or services through the combination of labor, materials, and technology to meet consumer demand.

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