In regression analysis,indicator variables allow us to incorporate:
A)interval variables into the model.
B)nominal variables into the model.
C)first-order variables into the model.
D)None of these choices.

Question

Quizplus · Accepted Answer

Indicator variables (also known as dummy variables) are used to represent nominal variables in regression analysis. Nominal variables are categorical variables that do not have a natural ordering, such as gender or race. Indicator variables represent the categories within the nominal variable as binary variables (0 or 1), allowing us to include them in regression models as explanatory variables. Therefore, option B is the correct choice.

In Regression Analysis,indicator Variables Allow Us to Incorporate