A Variable That Takes on the Values of 0 or 1

question 41

Multiple Choice

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

• A) an interaction.
• B) a constant variable.
• C) a dummy variable.
• D) a logit variable.

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Definitions:

Personally Liable

Being directly responsible for the fulfillment of an obligation or the compensation of a loss, often in a personal capacity rather than corporate.

Wrongful Acts

Actions that are illegal or immoral, causing harm or damage to others.

Limited Liability Company

A type of business structure where owners have limited personal liability for the debts and actions of the company.

Legal Person

An individual or organization that has legal rights and obligations, capable of entering into legal contracts, and can sue or be sued.