2007年1月4日

The Rule of Defining Dummy Variables

  1. If an inercept is used in the regression equation, proper difinition of the k-1 dummy variables automatically indexes an k categories.
  2. If k dummy variables are used to describe a nominal variable with k categories in a model containing an intercept, all the coefficients in the model cannot be uniquely estimated because collinearity is present(Why??).

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