Dummy Variables Created to Include Nominally Scaled Variables in an Analysis

question 45

Multiple Choice

Dummy variables created to include nominally scaled variables in an analysis are commonly used in:

• A)multiple discriminant analysis.
• B)factor analysis.
• C)conjoint analysis.
• D)multiple regression analysis.

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Definitions:

Capital Expenditures

Original cost of an asset as well as additions or enlargements, extraordinary repairs, and betterments.

Budgeting

The process of creating a plan to spend your money, allocating future income towards expenses, savings, and debt repayment.

Equipment

Tangible property used in operations, such as machinery or computers, which has a useful life beyond a single reporting period.

Furniture

Tangible, movable objects intended to support various human activities such as seating, eating, and sleeping, often considered a fixed asset in business accounting.