The following table has three variables and six observations. 

a. Convert Sex into dummy variables. Use the most frequent category as the reference category. Which category is the reference category? 

b. Transform Decision into dummy variables. Use the most frequent category as the reference category. Which category is the reference category? 

c. Transform the Decision values into category scores where Approve = 1, Reject = 2, and Need More Information = 3. How many observations have a category score of 2?

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Sex Income Female 95000 Approve Male 65000 Approve Female 55000 Need More Information Male 72000 Reject Male 58000 Approve Male 102000 Approve Decision