A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months),gender (0 = female,1 = male)and job type (0 = clerical,1 = technical).The following ANOVA summarizes the regression results: In the regression model,which of the following are dummy variables?
A)Intercept
B)Service
C)Service and gender
D)Gender and job
E)Service,gender,and job

Question

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months),gender (0 = female,1 = male)and job type (0 = clerical,1 = technical).The following ANOVA summarizes the regression results:  In the regression model,which of the following are dummy variables?
A)Intercept 
B)Service 
C)Service and gender 
D)Gender and job 
E)Service,gender,and job

Quizplus · Accepted Answer

Dummy variables are variables that are binary (0 or 1) and used to represent categorical data. In this case, gender and job type are the only variables listed that would be categorical and therefore require dummy variables to be introduced to the regression model. The intercept is not a dummy variable as it represents the expected value of the dependent variable when all independent variables are equal to 0. Similarly, the length of service variable is continuous and not categorical, so it does not require a dummy variable.

A Manager at a Local Bank Analyzed the Relationship Between