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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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Matching distribution is a probability distribution which arises in the following manner. Suppose that the set of n subjects, numbered 1; . . . ; n respectively, are arranged in
Principal components regression analysis is a process often taken in use to overcome the problem of multicollinearity in the regression, when simply deleting a number of the expla
Influence statistics: The range of statistics designed to assess the effect or the in?uence of an observation in determining results of the regression analysis. The general approa
How to estimate MLE for statistical anslysis using Markov Model?
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
The Null Hypothesis - H0: There is no heteroscedasticity i.e. β 1 = 0 The Alternative Hypothesis - H1: There is heteroscedasticity i.e. β 1 0 Reject H0 if Q = ESS/2 >
It is the survey which is carried out in Great Britain on a continuous basis since 1971. About 100 000 households are included in this sample every year. The main goal of the surve
Radical statistics group : The national network of the social scientists in United Kingdom committed to the critique of statistics as taken in use in the policy making procedure. T
what are all the organs
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