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Basic Question 6 of 6
Including dummy variables for all categories of a categorical variable in a regression model may lead to:
A. Heteroscedasticity
B. Autocorrelation
C. Multicollinearity
D. Overfitting
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.

Martin Rockenfeldt
Learning Outcome Statements
formulate and interpret a multiple regression model that includes qualitative independent variables;
CFA® 2025 Level II Curriculum, Volume 1, Module 4.