A Variable Used to Model the Effect of Categorical Independent

question 36

Multiple Choice

A variable used to model the effect of categorical independent variables in a regression model which generally takes only the value zero or one is called

• A)a residual.
• B)the coefficient of determination.
• C)a dummy variable.
• D)interaction.

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Definitions:

Capital

Funds or assets that are used for investing in business operations to generate profitable returns.

WACC

Stands for Weighted Average Cost of Capital, a calculation of a firm's capital cost that weights each category of capital proportionately.

Capital Components

The elements that make up a company's capital structure, including equity, debt, and any hybrid securities.

Calculate

To determine the amount or number of something mathematically.