I a Variable Whose Possible Outcomes Are Coded as a "1

question 123

Multiple Choice

i. A variable whose possible outcomes are coded as a "1" or a "0" is called a dummy variable. ii. If the null hypothesis $\beta$ ₄ = 0 is not rejected, then the independent variable X₄ has no effect in predicting the dependent variable.
iii. A dummy variable is added to the regression equation to control for error.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Vendor Allowances

Vendor allowances are funds provided by suppliers to a retailer for various promotional activities aimed at increasing the sale of their products.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation, over a certain period of time.

Goods Sold

Refers to products that have been sold and transferred from the seller to the buyer.

Cash Purchase Discount

A reduction in the amount paid for goods or services in exchange for paying in cash rather than credit.