Assume you are considering including two additional qualitative ...

[penguins]

Assume you are considering including two additional qualitative variables into a regression model. The first variable has 4 categories, and the second variable has 4 categories as well. Given this information, how many indicator variables will be incorporated into the model?
 a. 8
  b. 7
  c. 6
  d. 5
  e. 4

Question 2

Which of the following statements is true?
 a. It is appropriate to compute a correlation coefficient for the relationship between a dummy variable and a dependent variable.
  b. If a qualitative variable has m categories, you should use m - 1 dummy variables to incorporate the qualitative variable into a regression model.
  c. Dummy variables are used to incorporate qualitative variables into a regression model.
  d. All of these.
  e. None of these.

[leannegxo]

Answer to Question 1

C

Answer to Question 2

D

[penguins]

Thanks for the timely response, appreciate it

[alvinum]

TYSM