In order to represent a nominal variable with m categories,we must create m− 1 indicator variables.

Name: In order to represent a nominal variable with m categories,we must create m− 1 indicator variables.
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Quizplus · Accepted Answer

This is true. When we have a nominal variable with m categories, we create m-1 indicator variables in order to avoid the multicollinearity problem in regression analysis. The last category is represented by a vector of zeros, as it can be derived from the other indicator variables.

In Order to Represent a Nominal Variable with M Categories,we