I a Variable Whose Possible Outcomes Are Coded as a "1

question 34

Multiple Choice

i. A variable whose possible outcomes are coded as a "1" or a "0" is called a dummy variable.
ii. A dummy variable is added to the regression equation to control for error.
iii. If the null hypothesis β4 = 0 is not rejected, then the independent variable X4 has no effect in
Predicting the dependent variable.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Opportunity Cost

The exclusion of favorable outcomes from different choices upon selecting one option.

Increasing Opportunity Cost

A scenario where choosing more of one option increasingly limits the ability to choose other options, demonstrating the trade-offs in resource allocation.

Straight Line

A direct path between two points in a plane or three-dimensional space, having no curvature.

Opportunity Costs

The expense of the best alternative given up to make a choice.