Asked by Nathan Walker on Mar 10, 2024

verifed

Verified

In order to incorporate the marital status variable into a multiple regression model, there are four possible categories for this variable: married, single, divorced, or widow. Based on this information, four indictor variables will need to be created (one for each category) and incorporated into the regression model.

Marital Status

A demographic variable indicating the legal relationship status of an individual, such as single, married, divorced, or widowed.

Indicator Variables

Variables created to represent categorical data in numerical form, often used in statistical models to include qualitative data.

Regression Model

A statistical model that estimates relationships among variables, typically one dependent variable and one or more independent variables, to predict or explain outcomes.

  • Acquire knowledge on the significance of dummy variables for illustrating qualitative predictors in regression analysis.
  • Recognize the importance and methods for incorporating qualitative variables into regression models through dummy or indicator variables.
verifed

Verified Answer

TG
Trionna GreerMar 10, 2024
Final Answer :
False
Explanation :
In regression analysis, when incorporating a categorical variable with kkk categories, k−1k-1k1 indicator (dummy) variables are created to avoid multicollinearity and the dummy variable trap. Therefore, for marital status with four categories, only three indicator variables are needed, with one category serving as the reference group.