Which of the following describes the numbers that an indicator variable can have in a regression model?
A) 0 and 1
B) 1 and 2
C) 0, 1 and 2
D) None of these choices are correct.

Question

Quizplus · Accepted Answer

An indicator variable can only take the values of 0 or 1, indicating the presence or absence of a categorical variable in a regression model. Other values such as 2 are not valid for an indicator variable.

Which of the Following Describes the Numbers That an Indicator