Dummy Variables Are Variables That Can Take on Only Two

question 35

True/False

Dummy variables are variables that can take on only two values (namely,0 or 1)and that are used to indicate the absence or presence of a particular nominal characteristic.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been deducted from total revenue.

Variable Costs

Expenses that vary directly with the level of production or service delivery.

Fixed Costs

Fixed outgoings, including rent, salaries, and insurance, that are unaffected by production or sales volumes.

Net Income

The total earnings or profit of an individual or business after deducting expenses and taxes.