Michael is examining a data set and trying to determine which category he can transform into a dummy variable. Of the four variables, Employee Number, Pay Rate, Hire Date, and Sex, which is the best fit to use a dummy variable?
A) employee number
B) pay rate
C) hire date
D) sex

Question

Quizplus · Accepted Answer

Dummy variables are typically used for categorical data, not numerical data. Among the options, "Sex" is the only categorical variable that naturally fits the use of dummy variables, as it can be divided into categories (e.g., male, female) without any loss of information.

Michael Is Examining a Data Set and Trying to Determine