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:

Asset Sold

The process of transferring ownership of a business resource, which could be tangible or intangible, from one entity to another, usually in exchange for cash or its equivalent.

Unrealized Gain

An increase in the value of an asset or investment that has not yet been sold and thus, the gain has not been realized as actual profit.

Consolidated Financial Statements

Financial statements that show the financial results and position of a parent company and its subsidiaries as if they were a single entity.

Wholly Owned Subsidiary

A firm entirely possessed by another corporation, known as the parent company, holding all of its share capital.