A Dummy Variable Is

question 47

Multiple Choice

A dummy variable is:

• A) a variable with a low t-stat and high p-value.
• B) a placeholder for a variable to be gathered later.
• C) a dichotomous variable that is used to indicate the presence or absence of a characteristic.
• D) an unbiased estimate of the true variable.

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Definitions:

Union Shop

All employees must join the union, usually within 30 days after they are hired.

Closed Shop

An employer may hire only union members; outlawed under the Taft-Hartley Act.

Craft Union

A labor organization representing workers who practice the same craft or trade, aiming to negotiate better wages, conditions, and rights for its members.

Arbitrator

A neutral third party who resolves disputes between two or more parties outside of the court system, usually in a binding decision.