The variable color takes on values red,green,blue,and white.Is this an indicator variable?
A)Yes
B)No

Question

Quizplus · Accepted Answer

An indicator variable is a binary variable, typically taking values of 0 or 1, to indicate the absence or presence of some categorical effect or attribute. Since the variable color takes on more than two values (red, green, blue, and white), it is not an indicator variable but a categorical variable.

The Variable Color Takes on Values Red,green,blue,and White