Regression Models That Use a Dummy Variable as the Response

question 79

Short Answer

Regression models that use a dummy variable as the response variable are called binary or discrete ________ models.

---

Definitions:

Attractive Investment

An investment proposition that is deemed desirable due to its potential for significant returns or other beneficial outcomes.

Discount Rate

The rate of interest applied to calculate the present value of future cash flows.

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Investment Project

A project requiring capital investment, aiming to generate financial returns or benefits in the future.