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Basic Question 6 of 6

Including dummy variables for all categories of a categorical variable in a regression model may lead to:

A. Heteroscedasticity
B. Autocorrelation
C. Multicollinearity
D. Overfitting

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Craig Baugh

Craig Baugh

Learning Outcome Statements

formulate and interpret a multiple regression model that includes qualitative independent variables;

CFA® 2025 Level II Curriculum, Volume 1, Module 4.