Question: 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?

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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... View full answer

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