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:

Yield to Maturity

The expected full yield on a bond when held until its maturity period.

Semiannual Coupon

A bond payment made twice a year to bondholders, representing the interest payment on the bond’s face or nominal value.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.

Annual Coupon

The yearly interest payment issued to bondholders, typically expressed as a percentage of the bond’s face value.