A manager of a local package delivery store believes that too many of the packages were damaged or lost. She extracts a sample of 75 packages with the following variables: the package number (Package), the status of the package (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), and the size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table. Package Status Delivery Size 1 Damaged Standard M 2 Lost Express L 75 Damaged Same day M picture Click here for the Excel Data File a. Transform the Delivery variable into dummy variables. Use the most frequent category as the reference category. How many dummy variables should be created? Which category of Delivery is the reference category? Number of dummy variables created Reference category Standard

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I NEED THE ANSWER TO THE "NUMBER OF DUMMY VARIABLES"

A manager of a local package delivery store believes that too many of the packages were damaged or lost. She extracts a sample of 75 packages with the following variables: the package number (Package), the status of the package (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), and the size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table.
 

Package Status Delivery Size
1 Damaged Standard M
2 Lost Express L
75 Damaged Same day M
 

 

a)Transform the Delivery variable into dummy variables. Use the most frequent category as the reference category. How many dummy variables should be created? Which category of Delivery is the reference category?

Number of dummy variables: ????

Reference Category: Standard

 

Package Status Delivery Size
1 Damaged Standard M
2 Lost Express L
3 Lost Standard S
4 Delivered Standard M
5 Lost Standard M
6 Lost Same day M
7 Lost Standard XL
8 Lost Express S
9 Lost Express L
10 Damaged Standard XL
11 Damaged Standard XL
12 Damaged Express XL
13 Damaged Standard S
14 Delivered Express M
15 Lost Same day M
16 Damaged Express M
17 Damaged Standard XL
18 Damaged Standard M
19 Damaged Standard L
20 Damaged Standard M
21 Lost Standard M
22 Lost Express M
23 Lost Standard L
24 Damaged Same day L
25 Delivered Standard L
26 Damaged Standard S
27 Damaged Standard M
28 Lost Standard L
29 Delivered Same day S
30 Lost Same day M
31 Delivered Standard M
32 Lost Standard M
33 Damaged Standard XL
34 Delivered Express S
35 Lost Express S
36 Damaged Standard L
37 Delivered Standard XL
38 Damaged Same day XL
39 Damaged Express L
40 Lost Standard S
41 Delivered Standard XL
42 Delivered Express S
43 Damaged Same day S
44 Lost Standard M
45 Delivered Express M
46 Delivered Standard L
47 Lost Standard S
48 Lost Express L
49 Damaged Same day L
50 Delivered Standard XL
51 Lost Standard L
52 Lost Same day XL
53 Damaged Standard XL
54 Lost Express L
55 Lost Standard L
56 Damaged Express S
57 Damaged Standard L
58 Lost Standard S
59 Lost Standard XL
60 Damaged Express S
61 Delivered Standard L
62 Delivered Standard XL
63 Lost Standard L
64 Damaged Express S
65 Delivered Same day L
66 Damaged Standard XL
67 Delivered Express XL
68 Delivered Standard M
69 Damaged Standard L
70 Damaged Same day L
71 Delivered Express M
72 Delivered Express XL
73 Damaged Standard M
74 Delivered Express S
75 Damaged Same day M
A manager of a local package delivery store believes that too many of the packages were damaged or lost. She
extracts a sample of 75 packages with the following variables: the package number (Package), the status of the
package (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), and
the size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table.
Package
Status
Delivery
Size
1
Damaged
Standard
M
2
Lost
Express
L
75
Damaged
Same day
M
picture Click here for the Excel Data File
a. Transform the Delivery variable into dummy variables. Use the most frequent category as the reference
category. How many dummy variables should be created? Which category of Delivery is the reference category?
Number of dummy variables created
Reference category
Standard
Transcribed Image Text:A manager of a local package delivery store believes that too many of the packages were damaged or lost. She extracts a sample of 75 packages with the following variables: the package number (Package), the status of the package (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), and the size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table. Package Status Delivery Size 1 Damaged Standard M 2 Lost Express L 75 Damaged Same day M picture Click here for the Excel Data File a. Transform the Delivery variable into dummy variables. Use the most frequent category as the reference category. How many dummy variables should be created? Which category of Delivery is the reference category? Number of dummy variables created Reference category Standard
Expert Solution
Step 1 : Introduction

Dummy variables :

A dummy variable may be a variable with values of zero and one, with the values indicating the presence or absence of something (for example, a zero might represent a placebo and a one may indicate a medicine).
Indicator variables, style variables, contrasts, one-hot writing, and binary basis variables are all terms for dummy variables.

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