A dummy variable trap arises when a single dummy variable describes a given number of groups.

Name: A dummy variable trap arises when a single dummy variable describes a given number of groups.
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A dummy variable trap occurs when two or more dummy variables are highly correlated, meaning they provide redundant information, typically happening when one uses a dummy variable for each category of a categorical variable without omitting one category as the reference group.

A Dummy Variable Trap Arises When a Single Dummy Variable