1. How many indicator variables are need to code a categorical variable with8 levels (Example: A,B,C,D, E, F, G, H)?
2. Report the number of indicator variablesrequired to code 2 different categorical variables.

The first categorical variable has 3 levels (example High, Medium, Low)

The second categorical variable has 4 levels (Example: Red, Yellow, Green, Blue)?

3) Assume the following population model on books:

y=0+1x1+2x2

yis the mean cost to print books.

x1

is number of pages in the book.

x2

is an indicatorvariabletaking thevalue of 1 for hardcover book 0 for a soft cover book.

In this example assume the population parameters0,1,2

are positive.

What is the populationmean difference in the cost of a hardcover book andsoft coverbookwith the same number of pages?

plusmore for a hardcover book.

more for a hardcover book.

more for a hardcover book.

more for a hardcover book.

4)Error Degrees of Freedom are calculated as n - p - 1 for multiple regression models.The p represents the number of coefficients (not including the intercept) in the estimated model.

Report the Error Degrees of Freedom for this example:

Assume 160 observations are used to estimate afirst order model with 4 different numerical explanatory variables.

5)ErrorDegrees of Freedom are calculated as n - p - 1 for multiple regression models.The p represents the number of coefficients (not including the intercept) in the estimatedmodel.

Report the Error Degrees of Freedom for this example:

Assume 160 observations areused to estimate amodel with 2 numerical explanatory variables both with a linear relationship to the response and 1 categorical explanatoryvariable.The categorical variable has 4 levels.

6)ErrorDegrees of Freedom are calculated as n-p-1for multiple regression models.The p represents the number of coefficients(not including the intercept)in the estimatedmodel.

Assume160observations are used to estimate amodel with2 numericalexplanatory variables both with a linear relationship to the response.In addition there is one categorical variable with 3 levels and another categorical variable with 4 levels.

Report the Error Degrees of Freedom.