A Real Estate Agent Wishes to Predict the Selling Price

Multiple Choice

A real estate agent wishes to predict the selling price of a home based on several variables.One categorical variable of interest is the quality of the home - low,medium,or high.If the real estate agent wished to include "quality" in a regression model,how many indicator variables would he/she need to use in the model?

A) 4
B) 3
C) 0
D) 1
E) 2