dummy variable ols
Wemightbetemptedtoincludetwodummiesinourregression:afirstdummythatisequalto1iftheindividualhasahigherdegreeand0otherwise;.asecond ...,DummyExplanatoryVariable:Whenoneormoreoftheexplanatoryvariablesisadummyvariablebutthedependentvariableisnotadumm...
Dummy Variable
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- Categorical dependent variable
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Iftherearemorethantwocategories,wecanusemultipledummies.Thegeneralruleisthatkcategoriesrequirek−1dummyvariables.Withtwocategories, ...
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