In multiple regression, a dummy variable is significantly related to the dependent variable when ______________.
A) The global test of the regression equation is rejected
B) The test of the dummy variable's regression coefficient is rejected
C) The dummy variable is correlated with other independent variables
D) The dummy variable is coded as 2 or 3

Question

Quizplus · Accepted Answer

The test of the dummy variable's regression coefficient being rejected indicates that the dummy variable is significantly related to the dependent variable. The other options are not necessarily indicative of the significance of the dummy variable.

In Multiple Regression, a Dummy Variable Is Significantly Related to the Dependent