Which of the Following Is True of Dummy Variables

question 25

Multiple Choice

Which of the following is true of dummy variables?

• A)A dummy variable always takes a value less than 1.
• B)A dummy variable always takes a value higher than 1.
• C)A dummy variable takes a value of 0 or 1.
• D)A dummy variable takes a value of 1 or 10.

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Definitions:

Subsidized

Financial support provided, often by the government, to help reduce the cost of a service or commodity to the end user.

Economic Development

Activities aimed at improving the economic well-being and quality of life for a community, by creating and retaining jobs and supporting or growing incomes.

Operational

Pertains to the normal, day-to-day activities required for an organization or project to function effectively and efficiently.

Consolidation

Consolidation refers to the process of combining assets, liabilities, and other financial items of two or more entities into one.