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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
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#q A paper mill products two grade of paper viz., X & Y. Because of raw material restriction, it cannot produce more than 400 tons of grade X paper & 300 tons of grade Y paper in a
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Economic Interpretation of the Optimum Simplex solution
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Advantages and disadvantages of Integrated Economic Statistics
The Null Hypothesis - H0: There is no autocorrelation The Alternative Hypothesis - H1: There is at least first order autocorrelation Rejection Criteria: Reject H0 if LBQ1 >
Unequal probability sampling is the sampling design in which the different sampling units in the population have different probabilities of being included in sample. The differing
Categorical variable : A variable which provides the appropriate label of observation after the allocation to one of the several possible categories, for instance, the respiratory
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