Which of the Following Is Not One of the 'Five

question 54

Multiple Choice

Which of the following is not one of the 'five C's' of deciding which customers should be granted credit?

• A)Character.
• B)Capacity.
• C)Capability.
• D)Capital.

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Definitions:

Indicator Variables

Indicator variables, also known as dummy variables, are used in statistical models to represent categorical data by assigning a binary value (usually 0 or 1) to each category.

Indicator Variables

Variables in statistical modeling, often binary, used to represent the presence or absence of a characteristic.

Dependent Variables

Dependent variables are the outcomes or responses that researchers are trying to explain or predict, which change based on other variables.

Indicator Variable

A dummy variable that assigns a value of 0 or 1 to categorical data for use in regression analysis.