Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How do you interpret the coefficient of a dummy variable? Why do you only need to create k-1 dummy variables for a variable with k
How do you interpret the coefficient of a dummy variable? Why do you only need to create k-1 dummy variables for a variable with k categories?
Step by Step Solution
★★★★★
3.43 Rating (166 Votes )
There are 3 Steps involved in it
Step: 1
Dummy Variables in Regression In this lesson we show how to analyze regression equations when one or more independent variables arecategorical The key to the analysis is to express categorical variabl...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Bank Management and Financial Services
Authors: Peter Rose, Sylvia Hudgins
9th edition
78034671, 978-0078034671
