![SOLVED: a) What is the dummy variable trap and how is it related to the Gauss-Markov assumptions for OLS estimations of multivariate linear models? Where possible, use models, equations and/or graphical illustrations SOLVED: a) What is the dummy variable trap and how is it related to the Gauss-Markov assumptions for OLS estimations of multivariate linear models? Where possible, use models, equations and/or graphical illustrations](https://cdn.numerade.com/ask_images/c64b74d82acd47568bdd4d78e12bab86.jpg)
SOLVED: a) What is the dummy variable trap and how is it related to the Gauss-Markov assumptions for OLS estimations of multivariate linear models? Where possible, use models, equations and/or graphical illustrations
![SOLVED: Describe the cause of the dummy variable trap when using dummy variables for income quintiles. Describe completely (two reasons) why you would exclude the dummy variable for the highest income quintile SOLVED: Describe the cause of the dummy variable trap when using dummy variables for income quintiles. Describe completely (two reasons) why you would exclude the dummy variable for the highest income quintile](https://cdn.numerade.com/project-universal/previews/6096b50e-2df2-47c6-818e-cf16750996d4.gif)
SOLVED: Describe the cause of the dummy variable trap when using dummy variables for income quintiles. Describe completely (two reasons) why you would exclude the dummy variable for the highest income quintile
![THE DUMMY VARIABLE TRAP 1 Suppose that you have a regression model with Y depending on a set of ordinary variables X 2,..., X k and a qualitative variable. - ppt download THE DUMMY VARIABLE TRAP 1 Suppose that you have a regression model with Y depending on a set of ordinary variables X 2,..., X k and a qualitative variable. - ppt download](https://images.slideplayer.com/20/5979369/slides/slide_6.jpg)