A dummy variable is used as an independent variable in a regression model when:
A)the variable involved is interval.
B)the variable involved is nominal.
C)a curvilinear relationship is suspected.
D)two independent variables interact.

Question

Quizplus · Accepted Answer

A dummy variable is used to represent nominal variables with two or more categories in regression models. It takes the value of 1 for one category and 0 for the others, allowing the regression model to capture the effect of the categorical variable.

A Dummy Variable Is Used as an Independent Variable in a Regression