A Dummy Variable Is Used as an Independent Variable in a Regression

question 173

Multiple Choice

A dummy variable is used as an independent variable in a regression model when

• A)the variable involved is numerical.
• B)the variable involved is categorical.
• C)a curvilinear relationship is suspected.
• D)when 2 independent variables interact.

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Definitions:

Hoist Mechanism

A system or device utilized for lifting or moving heavy objects mechanically.

Damages

Compensation sought or awarded in a legal claim for loss or injury.

Specific Performance

A legal remedy in contract disputes where the court orders the breaching party to fulfill the exact terms of the contract, rather than simply paying damages.

Quantum Meruit

A legal principle where a person can recover a reasonable value of services provided, even in absence of a contract.