The effects of various levels of qualitative independent variables is described using dummy variables.
What are Dummy Variables?
A dummy variable in statistics is a variable that only accepts the values 0 or 1 to signify the lack or existence of any qualitative effect that may be predicted to affect the result.
A dummy variable is a numerical standpoint for a qualitative fact or logical assertion in quantitative analysis.
These kinds of variables are quantitative variables and their value range is limited; they only accept two quantitative values of 1 or 0.
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