If a qualitative variable has 'm' categories, we can run the regression using:

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Economics · Econometrics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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'm - 1' dummy variables and an intercept term

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Answer 1

'(m + 1)' dummy variables without an intercept

Answer 2

'(m - 1)' dummy variables without an intercept

Answer 3

'm' dummy variables and an intercept term

Answer 4

'm - 1' dummy variables and an intercept term

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