Consider the following regression equation: y = ₀+ ₁x₁+ …+ _k x_k+ u In which of the following cases, the dependent variable is binary? A)y indicates the gross domestic product of a country B)y indicates whether an adult is a college dropout C)y indicates household consumption expenditure D)y indicates the number of children in a family

Question

Quizplus · Accepted Answer

In the given regression equation, none of the independent variables are binary, but if y represents whether an adult is a college dropout or not, then y will be a binary variable taking two values, 0 or 1.

Consider the Following Regression Equation: Y = 0

Consider the Following Regression Equation: Y = ₀