What Does a Dummy-Variable Regression Analysis Examine

question 5

Multiple Choice

What does a dummy-variable regression analysis examine?

• A) The relationship between one continuous dependent and one continuous variable
• B) The relationship between one categorical dependent and one continuous independent variable
• C) The relationship between one continuous dependent and one categorical independent variable
• D) The relationship between one continuous dependent and one dichotomous variable

---

Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period of time.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (asset, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Operating Income

Earnings before interest and taxes (EBIT), representing the profits from a company's regular business operations excluding deductions of interest and taxes.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.