Which statement is incorrect?
A)Binary predictors shift the intercept of the fitted regression.
B)If a qualitative variable has c categories, we would use only c - 1 binaries as predictors.
C)A binary predictor has the same t test as any other predictor.
D)If there is a binary predictor (X = 0, 1) in the model, the residuals may not sum to zero.

Question

Quizplus · Accepted Answer

The presence of a binary predictor in a regression model does not affect the property that the sum of the residuals is zero. This property holds for any linear regression model that includes an intercept, regardless of the types of predictors included in the model.

Which Statement Is Incorrect