Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A) Dummy variables are used to incorporate categorical variables into a regression model.
• B) You should use one fewer dummy variables than are categories for the qualitative variable in question.
• C) It is appropriate to compute a correlation coefficient for the relationship between a dependent variable and a dummy variable.
• D) All of the above are true.

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Definitions:

Long-term Asset Turnover

A financial ratio that measures how efficiently a company uses its long-term assets to generate sales revenue.

Property, Plant, and Equipment

Long-term tangible assets used in the operating activities of a business, such as buildings, machinery, and equipment.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Competitive Floor

The minimum price level that a product or service can be sold at within a competitive market, ensuring the seller remains competitive while covering costs.