While the scaling assumptions of multiple regression require that both the independent and dependent variables be at least interval scaled, we may use categorical independent variables by using:
A) ratio scaled variables.
B) standardized beta coefficients.
C) dummy variables.
D) temporary variables.
E) semi-ratio variables.

Question

Quizplus · Accepted Answer

We can use dummy variables to represent categorical independent variables in multiple regression. Dummy variables are binary variables that take the value of 1 if the observation falls into a specific category and 0 otherwise. This allows us to include categorical variables in the model without violating the scaling assumptions of multiple regression.

While the Scaling Assumptions of Multiple Regression Require That Both