A Variable Taking on Only the Values 0 and 1

question 38

True/False

A variable taking on only the values 0 and 1 is called a dummy or indicator variable.

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Definitions:

Defined Contribution Pension Plan

A retirement plan where the amount contributed by employers or employees is specified, but the future benefit amount is not guaranteed, depending on investment performance.

Funding Obligation

Refers to the requirement for an entity to provide financial resources for a project, debt, or other commitment as agreed upon.

Underfunded Plans

Retirement or pension plans that lack enough assets to cover all present and future obligations.

Life Insurance

Life insurance is a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.