Dummy variables, Advanced Statistics

Assignment Help:

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

 


Related Discussions:- Dummy variables

Confidence interval estimation, An auditor for a government agency needs to...

An auditor for a government agency needs to evaluate payments for doctors' office visits paid by Medicare in a small regional town during the month of June. A total of 25,056 visit

Minimization, Minimization is the method or technique for allocating patie...

Minimization is the method or technique for allocating patients to the treatments in clinical trials which is usually the acceptable alternative to random allocation. The procedur

Mean-range plot, Mean-range plot   is the graphical tool or device usefu...

Mean-range plot   is the graphical tool or device useful in selecting a transformation in the time series analysis. The range is plotted against the mean for each of the seasona

Factor, The term used in a variety of methods in statistics, but mostly to ...

The term used in a variety of methods in statistics, but mostly to refer to the categorical variable, with a less number of levels, under examination in an experiment as a possible

Coincidences, Coincidences : Astonishing concurrence of the events, perceiv...

Coincidences : Astonishing concurrence of the events, perceived as meaningfully related, with no apparent causal connection. Such type of events abounds in everyday life and is oft

Dropout, A subject who withdraws from the study for whatever reason, advers...

A subject who withdraws from the study for whatever reason, adverse side effects, noncompliance, moving away from the district, etc. In number of cases the reason may not be known.

Rates of return, An investor with a stock portfolio sued his broker, claimi...

An investor with a stock portfolio sued his broker, claiming that a lack of diversification in his portfolio had led to poor performance. The data, shown below, are the rates of re

Define lagging indicators, Lagging indicators: The part of a collection of...

Lagging indicators: The part of a collection of the economic time series designed to give information about the broad swings in measures of the aggregate economic activity known a

Prognostic scoring system, Prognostic scoring system is a technique of com...

Prognostic scoring system is a technique of combining the prognostic information contained in the number of threat factors, in a manner which best predicts each patient's risk of

Describe item-total correlation, Item-total correlation is an  extensively...

Item-total correlation is an  extensively used method for checking the homogeneity of the scale made up of number of items. It is simply the Pearson's product moment correlation c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd