Question

In a linear regression model, you add a categorical variable of city that has 60 different cities.This leads to:

(i) Overfitting of your model

(ii) Underfitting of your model

(iii) Reduction in the Degrees of freedom of your model

(i) only

(ii) only

(iii) only

(i) and (ii)

(i) and (iii)

Answer 1

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ANSWER ::-

AS FOR GIVEN DATA...

In a linear regression model, you add a categorical variable of city that has 60 different cities.This leads to:

(i) Overfitting of your model

(ii) Underfitting of your model

(iii) Reduction in the Degrees of freedom of your model

SOLL::-

Reduction in the degrees of freedom of your model.

For each dummy variable, we decrease the degrees of freedom by 1

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