Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canada has 10 provinces and 3 territories for a total of 13 administrative regions. A researcher is studying the growth patterns and health of

 

Canada has 10 provinces and 3 territories for a total of 13 administrative regions. A researcher is studying the growth patterns and health of a particular animal species. He wants to include in his regression information about which administrative region each animal observed is from. (a) The researcher is contemplating using a "region" variable and assigning 12 of the regions a number, 1 through 12, leaving one region out to be the base case. Given concerns of perfect multicollinearity, will this approach work? (b) A friend of the researcher suggests creating 12 separate dummy variables, one for each region except one, and coding the variables with a 1 if the animal being observed is from that region, otherwise coding as a zero. Given concerns of perfect multicollinearity, will this approach work? How should the coefficient be interpreted?

Step by Step Solution

3.39 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

a Using a region variable and assigning numerical values 1 through 12 to the 12 regions while leavin... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essentials Of Statistics A Tool For Social Research

Authors: Joseph F. Healey

3rd Edition

111182956X, 978-1133713586, 1133713580, 978-1111829568

More Books

Students also viewed these Economics questions

Question

Explain the two methods used to encourage group communication.

Answered: 1 week ago