Economics · Regression Analysis
In Regression Analysis, if a quantitative or qualitative variable has 'm' categories, how many dummy variables can be introduced?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only m + 1 dummy variables
- 2Only m - 1 dummy variables✓
- 3Only m dummy variables
- 4Only 2m variables
Correct answer
Only m - 1 dummy variables
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