When is a dummy variable used as an independent variable in a regression model?
A)when the variable involved is numerical
B)when the variable involved is categorical
C)when the variable involved is continuous
D)when two independent variables interact

Question

Quizplus · Accepted Answer

A dummy variable is used as an independent variable in a regression model when the variable involved is categorical. This allows us to compare groups or categories within the variable by assigning a value of 0 or 1 to represent each category.

When Is a Dummy Variable Used as an Independent Variable