Question

In a regression model of student grades, we would code the nine categories of business courses taken (ACC, FIN, ECN, MGT, MKT, MIS, ORG, POM, QMM) by including nine binary (0 or 1) predictors in the regression.

True

False

Answer 1

Solution: In a regression model of student grades, we would code the nine categories of business courses taken (ACC, FIN, ECN, MGT, MKT, MIS, ORG, POM, QMM) by including nine binary (0 or 1) predictors in the regression.

Answer: The given statement is False.

Because for the given 9 categories, we can create 8 dummy variables, thereby creating 8 predictors in the regression. Therefore the given statement :

"In a regression model of student grades, we would code the nine categories of business courses taken (ACC, FIN, ECN, MGT, MKT, MIS, ORG, POM, QMM) by including nine binary (0 or 1) predictors in the regression" is False.