It is appropriate to use "dummy variables" in multiple regression when
A) there may be a nonlinear relationship between the independent variables and the dependent variable.
B) all independent variables are interval or ratio.
C) some of the independent variables are categorical.
D) there may be nonnormality in the independent variables.

Question

Quizplus · Accepted Answer

Dummy variables are used in multiple regression when some of the independent variables are categorical. Dummy variables allow us to represent categorical variables as numeric variables, which can then be included in the regression equation. This is necessary because the regression equation requires that all independent variables be numeric.

It Is Appropriate to Use "Dummy Variables" in Multiple Regression