The Use of Dummy Variables Refers to a Respecification Procedure

question 87

True/False

The use of dummy variables refers to a respecification procedure using variables that take on only two values,usually 0 or 1.

---

Definitions:

Lack-of-participation Error

Lack-of-participation error occurs when decision-making or evaluation processes are hindered due to the absence or minimal involvement of key individuals.

Confirmation Error

A cognitive bias where individuals give more weight to evidence that confirms their existing beliefs, disregarding evidence that contradicts them.

Availability Bias

The cognitive bias that causes people to overestimate the likelihood of events based on their recallability or prominence in memory.

Confirmation Error

A cognitive bias that involves favoring information that confirms previously existing beliefs or biases.