A dummy variable is used when Select one: Oa. the factor that is considered theoretically important is specified as a true/false (either/or) condition. Ob. the data required for a theoretically important variable is unavailable. Oc. the initial set of regression results are not persuasive.
Added by Lee C.
Close
Step 1
Step 1: Dummy variables are used to represent categorical variables in regression analysis. Show more…
Show all steps
Your feedback will help us improve your experience
Ivan Kochetkov and 95 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
A dummy variable is used as an independent variable in a regression model when Group of answer choices the variable involved is categorical. a curvilinear relationship is suspected. 2 independent variables interact. the variable involved is numerical.
Ivan K.
A dummy variable is used as an independent variable in a regression model when 1) the variable involved is numerical. 2) the variable involved is categorical. 3) a curvilinear relationship is suspected. 4) when 2 independent variables 5) unable to answer with information provided
Prashant B.
In multiple regression, a dummy variable is significantly related to the dependent variable when ______________. A. The global test of the regression equation is rejected B. The test of the dummy variable's regression coefficient is rejected C. The dummy variable is correlated with other independent variables D. The dummy variable is coded as 2 or 3
Md.Daniyal A.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD