Question: Assume you have a data set that includes only people with blue, black, green and brown eyes ( each person can have only one eye
Assume you have a data set that includes only people with blue, black, green and brown eyes each person can have only one eye color You can create binary dummy variables for each of these eye colors. Assume you want to estimate a multiple linear regression model with binary variables on the righthand side. You can choose to include the following choice of binary variables and an intercept a variable including entries of only One of these choices would violate the assumption of No Perfect Collinearity A Which one is it Each of the colours in the following answers describes a binary variable that turns to if the individual has that eye colour and is zero otherwise. For example: "Brown, Blue" means that you would include two binary variables: one that is if the person has brown eyes and one that turns to if the person has blue eyes. "Black, Brown, Green, intercept" is a set of three variables with the intercept, etc.
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