Dummy Variables Are Variables That Can Take on Only Two

question 35

True/False

Dummy variables are variables that can take on only two values (namely,0 or 1)and that are used to indicate the absence or presence of a particular nominal characteristic.

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Definitions:

Floral Deliveries

The service or business of transporting flowers or floral arrangements to specified locations or recipients.

Units-Of-Activity

A method of depreciation that allocates the cost of an asset over its useful life based on its activity level, such as miles driven or hours used.

Salvage Value

The estimated resale value of an asset at the end of its useful life; it is used in calculating depreciation expense.

Depreciation

The orderly apportionment of a physical asset's cost throughout its useful life.