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

⚡ Month End Offer - Flat 52% Off On All Courses! Enroll Now ⚡
00:00:00 AM Left

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

Which of the following diagrams indicates the best relation between Oil, Wick and Lamp?

Select the Venn diagram that best represents the relation between the following classes. Wood, Bed, Chair
Which of the following diagrams represents Tie, Saree and Trousers?

Identify the diagram that best represents the relationship between mothers, women post-graduates.

How many persons like all the activities i.e., Painting, Dancing and Music?
Which of the following diagrams represents Tie , Saree and Trousers ?

Seven girls Pw, Qw, Rw, Sw, Tw, Uw and Vw are sitting around a circular table facing the centre. Rw is an immediate neighbour of both Tw and Uw. Sw is s...
Which one of the areas marked (I - VII) represents the doctors who plays football but do not play Cricketer?

Study the given diagram carefully and answer the question. The number in different sections indicates the number of persons who speak different language...
An interview of 60 persons to know whether they play Tennis, Chess or Carrom was conducted. The data so obtained has been summarised in a pictorial dia...

The dummy variable trap occurs

Solution