Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
7th Edition
ISBN: 9781337298353
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
Publisher: South-Western College Pub
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Chapter 15.7, Problem 33E

Consider a regression study involving a dependent variable y, a quantitative independent variable x 1 , and a categorical independent variable with three possible levels (level 1, level 2, and level 3).

  1. How many dummy variables are required to represent the categorical variable?
  2. Write a multiple regression equation relating and the categorical variable to y.
  3. Interpret the parameters in your regression equation.

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