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    Real Econometrics The Right Tools to Answer Important Questions
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    Exam 6: Dummy Variables: Smarter Than You Think
  5. Question
    Explain the Reason Why We Cannot Include All of the Dummy
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Explain the Reason Why We Cannot Include All of the Dummy

Question 4

Question 4

Essay

Explain the reason why we cannot include all of the dummy variables that are part of a given category, and instead need to leave one out (which serves as the reference point).

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