What Are Dummy Variables and How Are They Used in the GLM

question 8

Essay

What are dummy variables and how are they used in the GLM?

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Definitions:

Quantity Demanded

The specific amount of a product that consumers are willing to buy at a given price, assuming all other factors are held constant.

Price Elastic

A measure of how much the quantity demanded of a good responds to a change in the price of that good. It indicates the sensitivity of consumers to price changes.

Total Revenue

The total income received by a firm from the sale of its products or services before any expenses are deducted.

Total Revenue

The overall revenue a business earns from sales of goods or provision of services throughout a given timeframe.