Question: (a) (8 points) Briefly explain, what is a dummy variable? What is the purpose of dummy variables in a regression model? (b) (8 points)

(a) (8 points) Briefly explain, what is a dummy variable? What is

(a) (8 points) Briefly explain, what is a dummy variable? What is the purpose of dummy variables in a regression model? (b) (8 points) How do we interpret regression coefficients associated with dummy variables? (c) (8 points) What is a dummy variable trap? How can we avoid it? (d) (6 points) How do we interpret slope cofficients in a multiple regression model?

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a What is a Dummy Variable A dummy variable also known as an indicator variable is a categorical variable that takes on the values 0 or 1 to represent ... View full answer

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