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Q3. (5 points) A researcher gathered 155 observations on four variables: job sat

ID: 3349766 • Letter: Q

Question

Q3. (5 points) A researcher gathered 155 observations on four variables: job satisfaction, occupation, industry, and marital status. She wants to develop a multiple regression model to predict job satisfaction by the other three variables. All three predictor variable are qualitative variables with the following categories 1. Occupation: accounting, management, murketing, finance 2. Industry: manufacturing, health care, transportation 3. Marital status: married, single How many variables will be in the regression model?

Explanation / Answer

1. For occupation, there are four categories so (n - 1) i.e. 3 dummy variables will be needed.

2. For industry, there are three categories so 2 dummy variables will be needed.

3. For marital status, there are two categories so 1 dummy variable will be needed.

4. For job satisfaction, one variable would be there.

Hence,

Total number of variables in the regression (Including the dependent variable i.e. job satisfaction)

= 3 + 2 + 1 + 1

= 7