How many binary dummy variables are needed to capture a variable that represents a university person...
How many binary dummy variables are needed to capture a variable that represents a university person as either faculty, staff or student?
A) 0
B) 1
C) 2
D) 3
Homework Answers
The correct answer is 'Option C'.
The number of binary variables needed to capture a variable that represents a university person as either faculty, staff or student can be calculated by k-1 where k represents the number of levels of the original variable. It is because it takes the value of 0 or 1 where 0 indicates the absence and 1 indicates the presence. In order to capture a variable that represents a university person as either faculty, staff or student only 3 - 1 = 2 dummy variables are needed. It is because either of the two may indicate a value if 1 which represents the presence and if both indicate a value of 0 then definitely the person belong to the category that is left. Therefore, the correct answer is 'Option C'.
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