What is a dummy variable? What does the coefficient on the dummy variable measure? Give some examples
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What is a dummy variable? What does the coefficient on the dummy variable measure? Give some examples drawn from economics, finance, and accounting of times when we would want to use a dummy variable in a regression.
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Answer A dummy variable also known as an indicator variable or binary variable is a variable that takes on the value of 0 or 1 to represent the presen...View the full answer
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Related Book For 
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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