Consider a regression study involving a dependent variable y, a quantitative independent variable x1, and a categorical independent variable with three possible levels (level 1, level 2, and level 3). (i) How many dummy variables are required to represent the categorical variable?  (ii) Write a multiple regression equation relating x1, and the categorical variable to y.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Chapter4: Equations Of Linear Functions
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Consider a regression study involving a dependent variable y, a quantitative independent variable x1, and a categorical independent variable with three possible levels (level 1, level 2, and level 3).

(i) How many dummy variables are required to represent the categorical variable? 

(ii) Write a multiple regression equation relating x1, and the categorical variable to y.

PLEASE SHOW ALL HAND WRITTEN STEPS AND DO NOT USE EXCEL OR ANY SOFTWARE

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