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

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In the given regression equation, the dependent variable y is binary only if it takes values of 0 or 1, indicating a categorical variable. Option B (y indicating whether an adult is a college dropout) fits this criterion as it is a binary response variable with values of either 0 or 1 (college dropout or not). The other options do not have binary dependent variables as y represents continuous variables (GDP and household consumption expenditure) or a count variable (number of children in a family). The dependent variable, y is binary if it is used to indicate a qualitative outcome.

Consider the Following Regression Equation: Y = 0

Consider the Following Regression Equation: Y = ₀