A Dummy Variable Is Used as an Independent Variable in a Regression

question 111

Multiple Choice

A dummy variable is used as an independent variable in a regression model when

• A) two independent variables interact.
• B) the variable involved is categorical.
• C) the variable involved is numerical.
• D) a curvilinear relationship is suspected.

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Definitions:

Private Label Brands

Brands owned by a retailer or supplier that is only sold in their own stores, offering an alternative to national brands.

Generic Brands

Products that are marketed without a branded name, often as a lower-cost alternative to named brands.

Co-brands

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Nielsen Research Firm

A global information, data, and measurement company specializing in market research and analytics, known for its television ratings and consumer behavior research.