Question

Indicator variables are useful under which of the following conditions:

a.	Some observations have a particular characteristic or attribute while others do not
b.	An individual may not wish to disclose the exact value (for example, age) and may prefer to express a category in which he/she falls (for example, age range)
c.	End users may wish to know whether differences exist between binary (for example, employed vs. unemployed) or categorical (first year employees, 2-4 year employees, 4-7 year employees, more than 7 year employees) groups
d.	B and C only.
e.	All of the above.

Answer 1

Typically pointer variable uses for qualitative information, for ex. the variable sex, work status (utilized or non utilized) i.e. the variable is nominal. for ex in the event that present in somebody, that variable take value "one" generally zero currently thinking about the given data,
statement a)Some perceptions have a specific attributes while others don't this variable signifies the present and missing of a few attributes.Thus this is the nominal variable and subsequently, demonstrate variable can be utilized.
statement b)An individual may not wish to unveil(disclose) the correct esteem (for ex, age) and may like to express a class in which he/she falls (for instance, age extend) for this situation, the variable is all out that in the event that the perception falls in an explicit classification, it takes the esteem T generally "zero"
statement c)this is likewise a straight out factor therefore we can utilize the marker variable
in this manner alternative (e) is valid.