A manufacturer of copying machines wishes to predict the number of copiers sold
ID: 2909706 • Letter: A
Question
A manufacturer of copying machines wishes to predict the number of copiers sold per week based on previous sales in each of three regions: Region A, Region B, and Region C. How many dummy variables should be used to represent the qualitative variable - sales region.
If we decide to use the variable X1 to represent Region A, which of the following structures must be used to indicate this
X1=0 if Region A
X1= 1 if other
X1= 1if Region A
X2= 1 if other
X1= 1if Region A
X1= 0 if other
X1=1if Region A
X2= 0 if other
X1=0 if Region A
X1= 1 if other
X1= 1if Region A
X2= 1 if other
X1= 1if Region A
X1= 0 if other
X1=1if Region A
X2= 0 if other
Explanation / Answer
ANSWER IS C
X1=1 if Region A
X1=0 if Other.
We use above structure to decide use variable X1 to represent region A.
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