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The variables resulting from the recoding categorical variables with more than two categories into the sequence of binary variables. Marital status, for instance, if originally labeled 1 for the married, 2 for single and 3 for divorced, widowed or separated, can be rede?ned in the terms of two variables which are given as follows
Variable 1: 1 if single, 0 otherwise;
Variable 2: 1 if the divorced, widowed or separated, 0 otherwise;
For the married person both the new variables would be zero. In common the categorical variable with k categories would be recorded in the terms of k 1 dummy variables. Such recoding is made in use before polychotomous variables are used as the explanatory variables in a regression analysis to avoid the unreasonable supposition with the original numerical codes for the categories, that is the values 1; 2; ... ; k, correspond to the interval scale. This procedure is generally known as dummy coding
regression line drawn as Y=C+1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual
Thomas Economic Forecasting, Inc. and Harmon Econometrics have the same mean error in forecasting the stock market over the last ten years. However, the standard deviation for Thom
Glejser test is the test for the heteroscedasticity in the error terms of the regression analysis which involves regressing the absolute values of the regression residuals for the
a psychic claims to be able to "feel colors" there are three pieces of colored paper(red, blue,green) he will place his hand on radomly selected pieces while blindfolded. you perfo
You have learned that there are 3 major central measures of any data set. Namely: mean, median, and mode. Which of the three, do the outliers affect the most?
Maximum likelihood estimation is an estimation procedure involving maximization of the likelihood or the log-likelihood with respect to the parameters. Such type of estimators is
How do I report the results in the table?
Collective risk models : The models applied to insurance portfolios which do not create direct reference to the risk characteristics of individual members of the portfolio when des
Attitude scaling : The process of analysing the positions of the individuals on scales purporting to measure attitudes, for instance a liberal-conservative scale, ora risk-willingn
can you help specify the model for an event study and to interpret the results/
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