A Variable That Takes on the Values of 0 or 1

question 55

Multiple Choice

A variable that takes on the values of 0 or 1 and is used to incorporate the effect of qualitative variables in a regression model is called

• A)an interaction
• B)a constant variable
• C)a dummy variable
• D)None of these alternatives is correct.

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Definitions:

Dividend

A portion of a company's earnings, decided by the board of directors, to be distributed among shareholders.

Pre-acquisition Equity

The equity interest that an acquirer holds in an acquiree before the business combination, accounted for in the acquisition process.

Post-acquisition Equity

The portion of an acquired company's equity that accrues or changes after the date of acquisition by the parent company.

Consolidation

The process of combining the financial statements of separate companies into the consolidated financial statements of a single entity, typically a parent company and its subsidiaries.