Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.
Sagot :
A variable that takes on the values of 0 or 1 and is used to incorporate the effect of categorical variables in a regression model is called the dummy variable.
We know that,
A dummy variable is a binary variable that takes a value of 0 or 1.
In regression analysis, a dummy variable is one that takes only the value 0 or 1 to indicate the absence or presence of some categorical effect that may be expected to shift the outcome.
The number of dummy variables we must create is equal to k - 1, where k is the number of different values that the categorical variable can take on.
It is an artificial variable created to represent an attribute with two or more distinct categories/levels.
These are being used in order to sort out data into mutually exclusive groups.
It is used typically in time series analysis, response modelling, bio-medical studies, economic forecasting and credit scoring.
Therefore, a variable that takes on the values of 0 or 1 and is used to incorporate the effect of categorical variables in a regression model is called the dummy variable.
Learn more about the dummy variable here:
https://brainly.com/question/4528945
#SPJ4
We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.
