The Editors of a National Automotive Magazine Recently Studied 30

Multiple Choice

The editors of a national automotive magazine recently studied 30 different automobiles sold in the Canada with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway fuel consumption. A number of different independent variables were collected. Included in these were two variables described as follows: If these two variables are to be included in a regression model, how many additional indicator variables will be needed?

A) 6
B) 8
C) 2
D) 4
E) 5