Deck 5: Dummy-Variable Regression

Question 1

What does a dummy-variable regression analysis examine?

A) The relationship between one continuous dependent and one continuous variable
B) The relationship between one categorical dependent and one continuous independent variable
C) The relationship between one continuous dependent and one categorical independent variable
D) The relationship between one continuous dependent and one dichotomous variable

Answer 1

C,D

Question 2

Which of the following is incorrect?

A) Regression with one dummy variable (predictor) corresponds directly to an independent analysis of variance (ANOVA)
B) Regression with more than one dummy variable including a covariate corresponds directly to an independent analysis of covariance (ANVOCA)
C) Regression with more than one dummy variable (predictor) corresponds directly to an independent analysis of variance (ANOVA)
D) Regression with one dummy variable (predictor) corresponds directly to an independent t-test

Answer 2

A

Question 3

Which of the following procedures can be used to compare the means of the included groups in a dummy-variable regression model?

A) Changing the reference group
B) Linear combination
C) Standardization
D) Not possible

Answer 3

A,B

Question 4

Why is the number of dummy variables to be entered into the regression model always equal to the number of groups (g) minus 1 (g−1)?

A) To avoid model misspecification
B) To increase the R-squared value
C) To avoid the situation of perfect multicollinearity
D) To control other variables in the model

Question 5

How do we interpret a dummy variable coefficient?

A) The difference between two means
B) The difference between two coefficients
C) The difference between two R-squared values
D) None of these