The Binary Dependent Variable Model Is an Example of a

question 11

Multiple Choice

The binary dependent variable model is an example of a

• A)regression model, which has as a regressor, among others, a binary variable.
• B)model that cannot be estimated by OLS.
• C)limited dependent variable model.
• D)model where the left-hand variable is measured in base 2.

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Definitions:

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Cost Method

An accounting method that values inventory and cost of goods sold based on the purchase cost of the materials.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Long-term Investment

Investments held by an entity for an extended period, typically more than one year, such as bonds, stocks, or real estate.