If a qualitative variable has c categories, then c dummy variables must be included in the regression model, one for each category.

Name: If a qualitative variable has c categories, then c dummy variables must be included in the regression model, one for each category.
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Quizplus · Accepted Answer

If a qualitative variable has c categories, then c-1 dummy variables are needed in the regression model to avoid the dummy variable trap and ensure the model is identifiable.

If a Qualitative Variable Has C Categories, Then C Dummy