A Variable That Can Assume Only One of Two Possible

question 11

Multiple Choice

A variable that can assume only one of two possible outcomes that take on the values of either 0 or 1,and is used to incorporate the effect of qualitative variables in a regression model,is referred to as ________.

• A)a dummy variable
• B)a constant endogenous variable
• C)an interaction
• D)a constant

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Definitions:

Net Operating Income

A measure of profitability that calculates the difference between a company's operating revenue and its operating expenses, excluding taxes and interest.

Fixed Expenses

Fixed expenses are costs that do not change with the level of production or sales, such as rent or salaries.

Break-even Point

The level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.

Unit Variable Cost

The cost associated with producing one additional unit of product, including materials, labor, and other costs that vary with production volume.