Dummy Variables Are a Way to Include into a Regression

question 9

Multiple Choice

Dummy variables are a way to include into a regression analysis

• A) nominal variables as dependent variable
• B) nominal variables as independent variables
• C) ordinal variables as dependent variables
• D) ordinal variables as independent variables

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Definitions:

Variable Cost

Financial obligations that adjust based on the level of manufacturing.

Earnings Before Interest And Taxes

A measure of a company's profitability that excludes interest and income tax expenses.

Depreciation Expense

The systematic allocation of the cost of an asset over its useful life, reflecting how the asset's value decreases over time due to use or obsolescence.

Tax Rate

The specified rate at which a person’s or company’s income is taxed.