A variable used to model the effect of categorical independent variables in a regression model which generally takes only the value zero or one is called
A)a residual.
B)the coefficient of determination.
C)a dummy variable.
D)interaction.

Question

Quizplus · Accepted Answer

A dummy variable is a binary variable that takes the value of one when a certain condition is satisfied and zero otherwise. Dummy variables are commonly used in regression models to represent categorical independent variables, such as gender or education level, that cannot be measured on a continuous scale. The value of the dummy variable represents whether an observation belongs to a particular category or not.

A Variable Used to Model the Effect of Categorical Independent