Dummy variables created to include nominally scaled variables in an analysis are commonly used in:
A)multiple discriminant analysis.
B)factor analysis.
C)conjoint analysis.
D)multiple regression analysis.

Question

Quizplus · Accepted Answer

Dummy variables are commonly used in multiple regression analysis to include nominally scaled variables in the analysis as nominal variables cannot be used directly in regression analysis. Dummy variables help in creating new variables that can be used as numeric variables in regression analysis.

Dummy Variables Created to Include Nominally Scaled Variables in an Analysis