When the Dependent Variable Is Binary (0 or 1), We

question 19

Multiple Choice

When the dependent variable is binary (0 or 1) , we need:

• A)stepwise regression.
• B)data transformation to improve conditioning.
• C)logistic regression.
• D)best subsets regression.

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Definitions:

Overhead Resources

The ongoing operational costs of running a business that are not directly tied to producing goods or services.

Plantwide Overhead Rate

A single overhead absorption rate calculated for an entire manufacturing plant and applied to all units produced, simplifying the allocation of indirect costs.

Overhead Cost

Expenses related to the operation of a business that cannot be directly linked to a specific product or service.

Simplicity

The quality of being easy to understand or use; the absence of complexity or complication.