The Dummy Variable Trap occurs when two or more dummy variables created by one-hot encoding are highly correlated (multi-collinear). This means that one variable can be predicted from the others, making it difficult to interpret predicted coefficient variables in regression models.

How do you stop a dummy trap?

To avoid dummy variable trap we should always add one less (n-1) dummy variable then the total number of categories present in the categorical data (n) because the nth dummy variable is redundant as it carries no new information.

What is dummy variable give an example?

A dummy variable is a variable that takes values of 0 and 1, where the values indicate the presence or absence of something (e.g., a 0 may indicate a placebo and 1 may indicate a drug).