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
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 |

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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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