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dummy variable
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dummy variable

statistics
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Quick Summary

A dummy variable is an arbitrary mathematical symbol or variable that can be replaced by another without affecting the value of the expression in which it occurs. In statistics, dummy variables are used to represent qualitative variables in regression analysis. These qualitative variables represent types or categories, rather than quantities.12

For example, if a study considers the type of container for a product (bottles or cans), a dummy variable can be assigned a numerical value. If the iced tea is in a bottle, the dummy variable might be 0, and if it's in a can, it might be 1. If there are more than two categories, multiple dummy variables are needed. This allows qualitative data to be incorporated into statistical models.2

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2 Britannica Sources
  1. dummy variable
  2. statistics - Model building

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