STATISTICAL TECHNIQUES AND TOOLS
MULTIPLE REGRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In regression analysis, a dichotomous variable, i.e., a variable which stands for one of two possible categories of an observation (e.g., male or female), is assigned a value of ____
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1 or 2
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0 or 1
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0 or 2
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x or y
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Explanation:
Detailed explanation-1: -A dummy variable takes on 1 and 0 only. The number 1 and 0 have no numerical (quantitative) meaning. The two numbers are used to represent groups. In short dummy variable is categorical (qualitative).
Detailed explanation-2: -Indeed, a dummy variable can take values either 1 or 0. It can express either a binary variable (for instance, man/woman, and it’s on you to decide which gender you encode to be 1 and which to be 0), or a categorical variables (for instance, level of education: basic/college/postgraduate).
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