A variable used in regression analysis that represents the presence or absence of a condition, e.g., seasonality, is called a(n):
A) Random variable.
B) Dummy variable.
C) Constant term variable.
D) Correlating variable.
E) Fixed term variable.

Question

Quizplus · Accepted Answer

A dummy variable is used in regression analysis to represent the presence or absence of a condition, such as seasonality, and takes on the values of 0 or 1. It is also known as an indicator variable or binary variable. The other options (random variable, constant term variable, correlating variable, fixed term variable) do not accurately describe a variable that represents the presence or absence of a condition.

A Variable Used in Regression Analysis That Represents the Presence