In explaining the amount of money spent on children's toys each year,which of the following independent variables is best represented with a dummy variable?
A) Age
B) Height
C) Gender
D) Weight

Question

Quizplus · Accepted Answer

Gender is the best choice for a dummy variable because it only has two possible values (male or female). Dummy variables are typically used for categorical variables with two or more categories to represent the presence or absence of a certain category in a regression model. Age, height, and weight are continuous variables that would not be appropriate for a dummy variable.

In Explaining the Amount of Money Spent on Children's Toys