Indicator variable

An indicator variable is like a light switch that can be turned on or off. It helps us keep track of certain things in a group of people or objects. For example, imagine we wanted to keep track of who has a pet and who doesn't in a class of kids. We could use an indicator variable that is turned on if a student has a pet and turned off if they don't. Then we can count how many students have pets and how many don't by looking at the indicator variables. It's like putting a checkmark next to someone's name if they have a pet. This way, we can easily see how many people belong to each group. Indicator variables are helpful for understanding patterns and making predictions based on different characteristics of a group.