I have a data set that includes qualitative data on the regi

I have a data set that includes qualitative data on the region in which a person lives. There are four possible values (north, south, east or west). If I want to represent this data in a regression model using dummy variables, the number of dummy variables should be _________ the number of possible values in the qualitative data.

Solution

The answer is double.

So you have 4 flags ( N S E and W) in quanitative data

But in our dummy data we have 1 and 0 in column for East or West and for North and South its 1 and 0. So 2 columns for dummy variables.

Answers: Instead of 1 we have 2 columns now. So answer is a. double