Suppose that you wanted to predict the price of a house based on where the house was located (northeast, northwest, southeast, or southwest) as well as square footage. How many indicator variables would you need?

a. 0
b. 3
c. 1
d. 2
e. 4

b. 3

Step-by-step explanation:

We know that , the indicator variable is a dummy variable in regression analysis which is used to denote either presence ( by 1 ) or absence ( by 0 ) of a nominal variable that can be responsible for the change in output.

Number of indicator variables = (all levels in the original variable)-1

Here , the given categories as per the location are northeast, northwest, southeast, or southwest.

i.e. all levels in the original variable = 4

Then, the umber of indicator variables we need = 4-1 =3

Hence, we need 3 indicator variables.

Thus , the correct answer is b. 3.

d, x=8

step-by-step explanation:

simplifying

4x + -5 = 2x + 11

reorder the terms:

-5 + 4x = 2x + 11

reorder the terms:

-5 + 4x = 11 + 2x

solving

-5 + 4x = 11 + 2x

solving for variable 'x'.

move all terms containing x to the left, all other terms to the right.

add '-2x' to each side of the equation.

-5 + 4x + -2x = 11 + 2x + -2x

combine like terms: 4x + -2x = 2x

-5 + 2x = 11 + 2x + -2x

combine like terms: 2x + -2x = 0

-5 + 2x = 11 + 0

-5 + 2x = 11

add '5' to each side of the equation.

-5 + 5 + 2x = 11 + 5

combine like terms: -5 + 5 = 0

0 + 2x = 11 + 5

2x = 11 + 5

combine like terms: 11 + 5 = 16

2x = 16

divide each side by '2'.