Hope Hernandez Is the New Regional Vice President for a Large

Multiple Choice

Hope Hernandez is the new regional Vice President for a large gasoline station chain.She wants a regression model to predict sales in the convenience stores.Her data set includes two qualitative variables: the gasoline station location (inner city, freeway, and suburbs) , and curb appeal of the convenience store (low, medium, and high) .The number of dummy variables needed for "curb appeal" in Hope's regression model is ______.

A) 1
B) 2
C) 3
D) 4
E) 5