In Multiple Regression, a Dummy Variable Can Be Included in a Multiple

question 60

Multiple Choice

In multiple regression, a dummy variable can be included in a multiple regression model as

• A) an additional quantitative variable.
• B) a nominal variable with three or more values.
• C) a nominal variable with only two values.
• D) a new regression coefficient.

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Definitions:

Paid-In Capital in Excess of Par

The amount of capital contributed by shareholders over and above the par value of the shares issued.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Retained Earnings Account

An equity account that represents the accumulated portion of net income that a company has decided to retain, rather than distribute among shareholders in the form of dividends.

Stock Dividend

A payment made in the form of additional shares rather than cash, distributed to shareholders from the company's existing stock.