Question

Suppose you have 3 categories of cars: large, small and medium. you create one variable (size) that takes values of 0 (small), 1 (medium) and 2 (large). you want to use the size information, together with the weight of a car to determine the car's fuel efficiency as measured in miles-per-gallon (mpg). if you regress mpg on weight, small and large, you will not be able to determine accurately whether different sized cars have different mpg based on their size category, because you cannot omit the middle category. group of answer choices true false

Answer 1

False. When performing a regression analysis, all relevant independent variables should be included in the model.

Step-by-step explanation:

False.

When performing a regression analysis, it is important to include all relevant independent variables in the model. In this case, the size of the car is represented by the variable 'size', which takes values of 0 (small), 1 (medium), and 2 (large). To accurately determine if different sized cars have different fuel efficiency based on their size category, all three categories (small, medium, and large) should be included in the regression model. Omitting the middle category (medium) would lead to inaccurate results.