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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
sales per day for a product are as follows: x= 10, 11, 12, 13 (p)= 0.2, 0.4, 0.3, 0.1 obtain mean and variance of daily sale. if the profit is described by the following equation p
Ask questioThe finance manager of ‘Softy’ baby soap manufacturing company being successful in the first two years of the company’s operations is considering setting up another plan
You may have the opportunity to buy some electronic components. These components may be reliable (1) or unreliable (2). The potential pro?ts are £10,000 if the components are rel
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Hypergeometric distribution is t he probability distribution related with the sampling without replacement from the population of finite size. If the population comprises of r ele
Generalized method of moments (gmm) is the estimation method popular in econometrics which generalizes the method of the moments estimator. Essentially same as what is known as the
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The measure of the degree to which the particular model differs from the saturated model for the data set. Explicitly in terms of the likelihoods of the two models can be defined a
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