Measurement invariance is supported if relationships between manifest indicator variables and the latent construct are the same across groups.

Leading indicator variables are particular economic variables that have a proven ability to signal the movement of the economy in advance.

Using indicator variables, let x equal 1 if x is in A and 0 otherwise.

Hence if entity defaults before or at time , the random indicator variable will take the value in 1, and 0 otherwise.

Let X be the indicator random variable of the event that the ith marble drawn is red.

The output of the algorithms are eigenvectors which do not satisfy the identity requirements for indicator variables defined by .

Coefficients of the indicator variables for Exams 3 and 4 were positive and statistically significant.

One household characteristic we focus on is an indicator variable of whether or not the household owns a personal computer.

Next for every , we define two indicator variables:

This is a useful property of indicator variables, especially for hypothesis testing.