[Step-by-Step] You want to fit a multiple regression model helping to predict the average income of small company managers. Two of the explanatory variables
Question: You want to fit a multiple regression model helping to predict the average income of small company managers. Two of the explanatory variables include highest degree with levels High school, BS and MS as well as location of the company with levels rural, suburban, small city and large city.
How many dummy/indicator variables are necessary to fit a multiple regression model accounting for the effect of both variables?
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