A dichotomous dependent variable is a variable that:
A) leads to biased estimates of the coefficient of interest.
B) can take on just two values, typically recorded as 0 and 1.
C) requires that you use OLS to estimate any determining function.
D) cannot be used to identify causal effects.

Question

Quizplus · Accepted Answer

A dichotomous dependent variable can take on just two values, typically recorded as 0 and 1. This is important to know when selecting and interpreting statistical models.

A Dichotomous Dependent Variable Is a Variable That