An Indicator Variable (Also Called a Dummy Variable)is a Variable

question 123

True/False

An indicator variable (also called a dummy variable)is a variable that can assume either one of two values (usually 0 and 1),where one value represents the existence of a certain condition,and the other value indicates that the condition does not hold.

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Definitions:

Transfer

The act of moving or conveying something from one place, person, or entity to another.

Capital Surplus

The amount of equity in a company that is derived from contributions by shareholders in excess of the par value of the shares.

Par Value

The nominal or face value of a stock or bond as stated by the issuer.

Cash Flow Test

A financial analysis method to determine the liquidity of a company by measuring the cash it generates or uses in its operations.