A researcher wants to explore the relationship between hair colour (blonde, brunette, auburn), salary, and empathy on amount of money donated to charity. He plans to use a regression analysis, what is wrong with this?
A) You cannot use a categorical variable (hair colour) in a regression analysis.
B) There are too many predictor variables.
C) There are too few predictor variables.
D) You cannot have a continuous outcome variable.

Question

Quizplus · Accepted Answer

Regression analysis can indeed handle categorical variables by converting them into dummy variables, but the statement incorrectly suggests that categorical variables cannot be used in regression analysis. This is a common misconception.

A Researcher Wants to Explore the Relationship Between Hair Colour