In general,to represent a qualitative predictor variable that has n possible categories we must create:
A) (n + 2)qualitative variables.
B) (n + 1)qualitative variables.
C) n qualitative variables.
D) (n - 1)qualitative variables.

Question

Quizplus · Accepted Answer

To represent a qualitative predictor variable with n categories in a regression model, we typically use (n - 1) dummy variables. This is because one category can be inferred from the others (it's the baseline category), avoiding the dummy variable trap which occurs when dummy variables are highly correlated.

In General,to Represent a Qualitative Predictor Variable That Has N