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How do dummy variables meet the linearity assumption?

How do dummy variables meet the linearity assumption?

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This question is based on the exercise from ‘Dealing with Categorical Data – Dummy Variables Exercise’. 
I decided to test the linearity assumption by plotting the dependent variable (price) vs the independent variables (size, year, view), as seen below. The price vs size graph clearly shows that a line can be drawn through the observations to create a clear linear regression, but this doesn’t appear to be the case for the price vs year and the price vs view graphs. Since both price vs year and price vs view are piecewise functions, are we only looking for linearity in each respective piece (does it pass the linearity assumption because for each year and view, it’s a linear vertical line)?
Thanks,
Varun 
 
 

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