A variable that can assume only one of two possible outcomes that take on the values of either 0 or 1,and is used to incorporate the effect of qualitative variables in a regression model,is referred to as ________.
A)a dummy variable
B)a constant endogenous variable
C)an interaction
D)a constant

Question

Quizplus · Accepted Answer

A dummy variable is a variable that takes on the values of 0 or 1 to represent the presence or absence of a characteristic or attribute. It is commonly used in regression analysis to incorporate the effect of qualitative variables, such as gender or race, into a model.

A Variable That Can Assume Only One of Two Possible