Answer-The dummy variable trap occurs when

The Dummy Variable trap is a scenario in which the independent variables are multicollinear - a scenario in which two or more variables are highly correlated in simple terms one variable can be predicted from the others

Question

The dummy variable trap occurs

when

A a dummy is not defined as zero or one

B There is multicollinearity among the independent variable

C the intercept is omitted

D There is autocorrelation

Practice Next

More Research Questions

Invention of graphical user interface (GUI) and the mouse took place in which generation of computers?
A word in a web page that, when clicked, opens another document is called ___
Which of the following correctly lists computer memory types from highest to lowest speed ?
1 Mega Byte is equal to
What kind of errors are pointed out by the compiler ?
A function inside another function is called a ….. Function.
Granting an external organization access to internet web pages is often facilitated through a(n):
The key utilized to activate the execution of a selected command is:
Which PowerPoint view displays each slide of the presentation as a thumbnail and is useful for rearranging slides?
DSL is an example of a(n) ____________ connection.

The dummy variable trap occurs

Solution