In linear regression, a dummy variable is used:
A) to represent residual variables
B) to represent missing data in each sample
C) to include hypothetical data in the regression equation
D) to include categorical variables in the regression equation
E) when "dumb" responses are included in the data

Question

Quizplus · Accepted Answer

A dummy variable is used in linear regression to include categorical variables in the regression equation. It is a binary variable that takes the value 0 or 1 to indicate the presence or absence of a certain category. By including such variables in the regression equation, we can study the effect of different categories on the dependent variable.

In Linear Regression, a Dummy Variable Is Used