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Finally, for the third comparability, the values of x3 are coded -1/four -1/four -/14 and then three/four. Below we show 2 methods for creating the dummy variables from the table above. Then we modify the value of this new variable to equal one if the level within the original variable is one. In Method 2, we use a “do-loop” to generate the brand new variables, which could be useful in case your categorical variable has a large number of levels. Stable Micro Systems’ roots lie in high quality design and development engineering.

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Coding Techniques For Categorical Variables In Regression Evaluation

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