A Healthcare Executive Is Using Regression to Predict Total Revenues

Multiple Choice

A healthcare executive is using regression to predict total revenues.She has decided to include both patient length of stay and insurance type in her model.Insurance type can be grouped into the following categories: Medicare,Medicaid,Managed Care,Self-Pay,and Charity.Which of the following is true?

A) Insurance type will be represented in the regression model by five binary variables.
B) Insurance type will be represented in the regression model by six dummy variables.
C) Insurance type will be represented in the regression model by five dummy variables.
D) Insurance type will be represented in the regression model by four binary variables.
E) Neither binary nor dummy variables are necessary for the regression model.