If there are m category classifications, there needs to be _____ dummy variables in the regression equation. A) m + 1 B) (m + 1)/2 C) m - 1 D) (m - 1)^1/2 E) (m - 1)/2

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In regression analysis, when dealing with categorical variables with m categories, m - 1 dummy variables are needed. This is because one category can be inferred from the others, serving as the reference category.

If There Are M Category Classifications, There Needs to Be