In explaining the income earned by college graduates,which of the following independent variables is best represented by a dummy variable?
A)Grade point average
B)Age
C)Number of years since graduating from high school
D)College major

Question

Quizplus · Accepted Answer

College major is best represented by a dummy variable, as it is a categorical variable with distinct categories (or majors) that don't have a natural numerical order or relationship. A dummy variable can be created for each major to capture its effect on income, with one category (or major) serving as the reference category. For the other variables, GPA, age, and number of years since graduating from high school are continuous variables and can be included in the regression model as such.

In Explaining the Income Earned by College Graduates,which of the Following