Question

1. If we add k indicator variables to a regression model for a categorical variable with...

1. If we add k indicator variables to a regression model for a categorical variable with k levels, the regression tool will return one coefficient estimate of 0.00 because:

a. The k variables are not independent b. The k variables are independent

2. If we add up to 3rd order polynomial terms to a regression model (e.g., x, x^2 and x^3) it will allow the relationship between X and Y to change direction 3 times.

a. True b. False

3. The coefficient of an indicator variable can be interpreted as the average difference from (i.e., relative to) the category level that was left out (i.e., was coded as 0s).

a. True b. False

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