An indicator variable is a variable that can assume:
A)one of two values (usually 0 and 1).
B)one of three values (usually 0,1,and 2).
C)any number of values.
D)None of these choices.

Question

Quizplus · Accepted Answer

An indicator variable is typically used to represent the presence or absence of a particular attribute or characteristic. As such, it only needs to take on two values, usually represented as 0 or 1. For example, a binary indicator variable could be used to represent whether a person is a smoker (1) or non-smoker (0).

An Indicator Variable Is a Variable That Can Assume