Economics · Econometrics - Dummy Variables
The mistake of including too many dummy variables among the independent variables, leading to perfect multicollinearity, is called:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Dummy variable regression
- 2Dummy variable trap✓
- 3Dummy dependent variable model
- 4Errors in Variables
Correct answer
Dummy variable trap
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