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How many dummy variables are needed for categorical variable

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Reference no: EM131655652

Question: You are considering developing a regression equation relating a dependent variable to two independent variables. One of the variables can be measured on a ratio scale, but the other is a categorical variable with four possible levels.

a. How many dummy variables are needed to represent the categorical variable?

b. Write a multiple regression equation relating the dependent variable to the independent variables.

c. Interpret the meaning of the coefficients in the regression equation.

Reference no: EM131655652

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