Question

A decision maker is considering including two additional variables into a regression model that has as the dependent variable, Total Sales. The first additional variable is the region of the country (North, South, East, or West) in which the company is located. The second variable is the type of business (Manufacturing, Financial, Information Services, or Other). Given this, how many additional variables will be incorporated into the model?

a. 9
b. 8
c. 6
d. 2

Answer 1

Answer: Option d.

Explanation:

The aditional variables are:

Region of the country. (where the options are Noth, Sout, East or West)

Type of business (where the options are Manufacturing, Financial, Information Services, or Other)

Then we are only adding 2 aditional variables to the model, the correct option is d.