Dummy variable (statistics) - Wikipedia, the free encyclopedia

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In statistics and econometrics, particularly in regression analysis, a dummy variable (also known as an indicator variable) is one that takes the values 0 or 1 to indicate the absence or presence of some categorical effect that may be expected to shift the outcome.[1] For example, in econometric time series analysis, dummy variables may be used to indicate the occurrence of wars, or major strikes. It could thus be thought of as a truth value represented as a numerical value 0 or 1 (as is sometimes done in computer programming).

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