Dummy Variables Take on the Values of ________ and Are

question 18

Multiple Choice

Dummy variables take on the values of ________ and are used to model the effects of different levels of qualitative variables.

• A) 1 or −1
• B) 1 or 2
• C) 0 or 2
• D) 0 or 1

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Definitions:

Acquisition

The process by which one company purchases most or all of another company's shares to take control.

Synergy

The belief that the combined strength and efficiency of two unified companies will exceed the total of their individual contributions.

Incremental Net Gain

The additional net profit earned as a result of a particular decision or action, taking into account all relevant costs and revenues.

Merger

The combination of two or more companies into a single corporate entity, with the newly formed organization often taking on a new name.