Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
A dummy variable is a placeholder variable used in mathematical equations or statistical analysis to represent different categories or conditions. It does not have any real meaning or value, but it helps organize and analyze data.
Related terms
Categorical Variable: A categorical variable is a type of variable that represents qualitative data and can be divided into distinct categories or groups.
Indicator Variable: An indicator variable is another term for a dummy variable. It is used to indicate the presence or absence of a certain condition.
Binary Variable: A binary variable is a special type of dummy variable that can only take two values, typically representing yes/no or true/false conditions.