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
Homework Answers
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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