Question

A dummy variable, also referred to as an indicator or a binary variable, takes on numerical values of 1 or 0 to describe two categories of a categorical variable.For a predictor variable that is a dummy variable, it is common to refer to the category that assumes a value of 0 as:

Please select all that apply.
Multiple select question.
A. Benchmark category
B. Reference category
C. Regression dummy
D. Dummy category

Answer 1

A dummy variable is a binary variable that takes on numerical values of 1 or 0 to describe two categories of a categorical variable. The category that assumes a value of 0 is commonly referred to as the benchmark category or the reference category.

Step-by-step explanation:

A dummy variable, also referred to as an indicator or a binary variable, takes on numerical values of 1 or 0 to describe two categories of a categorical variable.

For a predictor variable that is a dummy variable, the category that assumes a value of 0 is commonly referred to as the benchmark category or the reference category.

It is important to note that these terms are interchangeable and often used in different fields of study.