Question

When the dependent variable is on the y-axis and there is only one independent variable and...

When the dependent variable is on the y-axis and there is only one independent variable and it is placed on the x-axis, the error term for a given observation is the vertical distance between the observation and the TRUE regression line.

True

False

What is the name for a variable that represents values of only zero and one?

a discrete variable

a time-series variable

a dummy variable

a continuous variable

0 0
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Answer #1

1. True
(Error term is the vertical distance between the observation and the TRUE regression line or the predicted value.)

2. a dummy variable
(A dummy variable takes value only zero and one because it represents two opposite characteristics.)

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