Tag Archives: Altering Dummy

Describe how to interpret the parameters of the recoded model-Is there a reason to prefer one coding over the other?

Altering Dummy Variable Values Consider the two variable regression problem with a dummy variable in the design matrix: g = /30 + thi+ 71+ e, where 1 is a dummy-variable that is coded 1 if the observation satisfies a certain condition, and is 0 ti otherwise. Consider replacing the 0 and 1 values in d […]