So That We Can Fit Curves as Well as Lines

question 42

True/False

So that we can fit curves as well as lines by regression,we often use mathematical manipulations for converting one variable into a different form.These manipulations are called dummy variables.

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Definitions:

Disinflation

A reduction in inflation rates, signaling a deceleration in the pace at which the prices of goods and services rise.

CPI

The Consumer Price Index serves as a measurement tool that quantifies the average cost of a selected range of consumer goods and services, taking into account food, transportation, and healthcare, through weighted average prices.

Disinflation

A decrease in the rate of inflation, resulting in a slow down in the rate at which prices are rising.

Deflation

is the decrease in the general price level of goods and services, often signifying an economic contraction.