Question: Walmart is conducting a study to understand the impact of store types on weekly sales. They assign numeric codes to store types: 1 for Supercenters,

Walmart is conducting a study to understand the impact of store types on weekly sales. They assign numeric codes to store types: 1 for Supercenters, 2 for Neighborhood Markets, and 3 for Discount Stores. Which stamen is true about this approach of using these numeric codes in their regression analysis? It ensures a linear relationship between store types and sales. It makes the regression model easier to interpret. It incorrectly implies an ordered and equally spaced relationship between store types. It enhances the model's predictive accuracy.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!