I NEED THE ANSWER TO THE "NUMBER OF DUMMY VARIABLES"

A manager of a local package delivery store believes that too many of the packages were damaged or lost. She extracts a sample of 75 packages with the following variables: the package number (Package), the status of the package (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), and the size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table.

Package Status Delivery Size

1 Damaged Standard M

2 Lost Express L

⋮ ⋮ ⋮ ⋮

75 Damaged Same day M

a)Transform the Delivery variable into dummy variables. Use the most frequent category as the reference category. How many dummy variables should be created? Which category of Delivery is the reference category?

Number of dummy variables: ????

Reference Category: Standard

Package Status Delivery Size

1 Damaged Standard M

2 Lost Express L

3 Lost Standard S

4 Delivered Standard M

5 Lost Standard M

6 Lost Same day M

7 Lost Standard XL

8 Lost Express S

9 Lost Express L

10 Damaged Standard XL

11 Damaged Standard XL

12 Damaged Express XL

13 Damaged Standard S

14 Delivered Express M

15 Lost Same day M

16 Damaged Express M

17 Damaged Standard XL

18 Damaged Standard M

19 Damaged Standard L

20 Damaged Standard M

21 Lost Standard M

22 Lost Express M

23 Lost Standard L

24 Damaged Same day L

25 Delivered Standard L

26 Damaged Standard S

27 Damaged Standard M

28 Lost Standard L

29 Delivered Same day S

30 Lost Same day M

31 Delivered Standard M

32 Lost Standard M

33 Damaged Standard XL

34 Delivered Express S

35 Lost Express S

36 Damaged Standard L

37 Delivered Standard XL

38 Damaged Same day XL

39 Damaged Express L

40 Lost Standard S

41 Delivered Standard XL

42 Delivered Express S

43 Damaged Same day S

44 Lost Standard M

45 Delivered Express M

46 Delivered Standard L

47 Lost Standard S

48 Lost Express L

49 Damaged Same day L

50 Delivered Standard XL

51 Lost Standard L

52 Lost Same day XL

53 Damaged Standard XL

54 Lost Express L

55 Lost Standard L

56 Damaged Express S

57 Damaged Standard L

58 Lost Standard S

59 Lost Standard XL

60 Damaged Express S

61 Delivered Standard L

62 Delivered Standard XL

63 Lost Standard L

64 Damaged Express S

65 Delivered Same day L

66 Damaged Standard XL

67 Delivered Express XL

68 Delivered Standard M

69 Damaged Standard L

70 Damaged Same day L

71 Delivered Express M

72 Delivered Express XL

73 Damaged Standard M

74 Delivered Express S

75 Damaged Same day M

Transcribed Image Text:A manager of a local package delivery store believes that too many of the packages were damaged or lost. She extracts a sample of 75 packages with the following variables: the package number (Package), the status of the package (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), and the size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table. Package Status Delivery Size 1 Damaged Standard M 2 Lost Express L 75 Damaged Same day M picture Click here for the Excel Data File a. Transform the Delivery variable into dummy variables. Use the most frequent category as the reference category. How many dummy variables should be created? Which category of Delivery is the reference category? Number of dummy variables created Reference category Standard

Question

I NEED THE ANSWER TO THE &#34;NUMBER OF DUMMY VARIABLES&#34;A manager of a local package delivery store believes that too many of the packages were damaged or lost. She extracts a sample of 75 packages with the following variables: the package number (Package), the status of the package (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), and the size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table. PackageStatusDeliverySize1DamagedStandardM2LostExpressL⋮⋮⋮⋮75DamagedSame dayM  a)Transform the Delivery variable into dummy variables. Use the most frequent category as the reference category. How many dummy variables should be created? Which category of Delivery is the reference category?Number of dummy variables: ????Reference Category: Standard PackageStatusDeliverySize1DamagedStandardM2LostExpressL3LostStandardS4DeliveredStandardM5LostStandardM6LostSame dayM7LostStandardXL8LostExpressS9LostExpressL10DamagedStandardXL11DamagedStandardXL12DamagedExpressXL13DamagedStandardS14DeliveredExpressM15LostSame dayM16DamagedExpressM17DamagedStandardXL18DamagedStandardM19DamagedStandardL20DamagedStandardM21LostStandardM22LostExpressM23LostStandardL24DamagedSame dayL25DeliveredStandardL26DamagedStandardS27DamagedStandardM28LostStandardL29DeliveredSame dayS30LostSame dayM31DeliveredStandardM32LostStandardM33DamagedStandardXL34DeliveredExpressS35LostExpressS36DamagedStandardL37DeliveredStandardXL38DamagedSame dayXL39DamagedExpressL40LostStandardS41DeliveredStandardXL42DeliveredExpressS43DamagedSame dayS44LostStandardM45DeliveredExpressM46DeliveredStandardL47LostStandardS48LostExpressL49DamagedSame dayL50DeliveredStandardXL51LostStandardL52LostSame dayXL53DamagedStandardXL54LostExpressL55LostStandardL56DamagedExpressS57DamagedStandardL58LostStandardS59LostStandardXL60DamagedExpressS61DeliveredStandardL62DeliveredStandardXL63LostStandardL64DamagedExpressS65DeliveredSame dayL66DamagedStandardXL67DeliveredExpressXL68DeliveredStandardM69DamagedStandardL70DamagedSame dayL71DeliveredExpressM72DeliveredExpressXL73DamagedStandardM74DeliveredExpressS75DamagedSame dayM A manager of a local package delivery store believes that too many of the packages were damaged or lost. Sheextracts a sample of 75 packages with the following variables: the package number (Package), the status of thepackage (Status: Delivered, Damaged, or Lost), the delivery type (Delivery: Standard, Express, or Same day), andthe size of the package (Size: S, M, L, and XL). A portion of the data is shown in the accompanying table.PackageStatusDeliverySize1DamagedStandardM2LostExpressL75DamagedSame dayMpicture Click here for the Excel Data Filea. Transform the Delivery variable into dummy variables. Use the most frequent category as the referencecategory. How many dummy variables should be created? Which category of Delivery is the reference category?Number of dummy variables createdReference categoryStandard

Accepted Answer

Dummy variables :
A dummy variable may be a variable with values of zero and one, with the values…

Package	Status	Delivery	Size
1	Damaged	Standard	M
2	Lost	Express	L
⋮	⋮	⋮	⋮
75	Damaged	Same day	M