In Multiple Regression, a Dummy Variable Is Significantly Related to the Dependent

question 88

Multiple Choice

In multiple regression, a dummy variable is significantly related to the dependent variable when ______________.

• A) The global test of the regression equation is rejected
• B) The test of the dummy variable's regression coefficient is rejected
• C) The dummy variable is correlated with other independent variables
• D) The dummy variable is coded as 2 or 3

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Definitions:

Short Run

A period of time in economics during which at least one factor of production is fixed, limiting the capacity to adjust to changes in demand or market conditions.

Long Run

Describes a period in which all factors of production and costs are variable, allowing for the adjustment of all inputs and technology by firms.

Fixed Resource

Refers to a factor of production that remains constant, regardless of the level of output or activity in the short term.

Short-Run Adjustment

A temporary change in production or operation to respond to immediate changes in market or environmental conditions.