Binary dummy variables are used when dealing with
A)quadratic independent variables.
B)quantitative independent variables.
C)qualitative independent variables.
D)continuous independent variables.

Question

Quizplus · Accepted Answer

Binary dummy variables are typically used when dealing with qualitative independent variables, which are variables that take on discrete categorical values rather than continuous numerical values. By creating binary dummy variables, each possible value of the categorical variable can be represented as a separate binary variable, which can then be used as an independent variable in regression analysis. For example, if a categorical variable has three possible values (e.g. red, blue, green), three binary dummy variables can be created (e.g. red=yes/no, blue=yes/no, green=yes/no) to represent the variable in a regression analysis.

Binary Dummy Variables Are Used When Dealing with