Which of the following best describes when to use an indicator variable in a regression?
A) To include a quantitative variable in a regression model.
B) To include a qualitative variable in a regression model.
C) To include any variable in a regression model.
D) To include a y variable in a regression model.

Question

Quizplus · Accepted Answer

Indicator variables, also known as dummy variables, are used to include qualitative variables in a regression model. They allow us to represent categorical variables as numerical variables in the regression equation.

Which of the Following Best Describes When to Use an Indicator