If two indicator variables are used in a logistic regression model,then the nominal variable they represent has only two categories.

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Indicator variables, also known as dummy variables, are used to encode categorical variables into a form that can be provided to machine learning algorithms. If two indicator variables are used, it implies that the nominal variable they represent has three categories. In general, if a nominal variable has N categories, N-1 indicator variables are needed to represent all categories.

If Two Indicator Variables Are Used in a Logistic Regression