too many dummy variables results in collinearity...

according to q bank - anyone know why?

Think of having a dummy for male and one for female. If I tell you that the value of DanLieb = 1 for Male, you know it is 0 for female. The two are pefectly colinear.

right that makes sense, whenever one of them is turned on, every time the others will be turned off each time. thanks.