An indicator variable is also called:
A)a response variable.
B)a dummy variable.
C)a predictor variable.
D)a dependent variable.

Question

Quizplus · Accepted Answer

An indicator variable is commonly referred to as a dummy variable because it takes on only two possible values (0 or 1) to represent the presence or absence of a certain characteristic. Indicator variables are used as predictors in statistical models. Response variables are the outcome or dependent variable being predicted, while predictor variables are the independent variables used to predict the response variable.

An Indicator Variable Is Also Called