A Variable That Is Coded as Either Zero or One

question 14

Multiple Choice

A variable that is coded as either zero or one and has two distinct levels is called a(n) :

• A) regression variable.
• B) dummy variable.
• C) continuous variable.
• D) eigenvalue.

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Definitions:

Future

A standardized financial contract obligating the buyer to purchase, and the seller to sell, a specific asset at a predetermined future date and price.

Transactions Exposure

The risk that a company's financial performance or position may be affected by fluctuations in exchange rates impacting transactions in foreign currencies.

Financial Risk

A potential for financial loss inherent in an investment or business operation.

Uncertain Prices

Prices that are not fixed or determined, often fluctuating due to various market conditions or uncertainties.