dean
Uploaded by
7 SLIDES
175 VUES
70LIKES

Understanding Categorical Variables in Multiple Regression Analysis

DESCRIPTION

Learn how to interpret and calculate residuals for categorical variables using indicator variables in multiple regression analysis.

1 / 7

Télécharger la présentation

Understanding Categorical Variables in Multiple Regression Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Multiple Regression Using Indicator Variables

  2. Try this … 1. What is the formula for residual? 2. A variable can be either _________ or __________. 3. What is being interpreting with each phrase?

  3. Categorical Variables • So far, we have been working with numerical data. • If a variable in a regression is categorical, it is called an _________ / ________ variable. • The dummy variable can be on (__) or off (__).

  4. Ex: Winter Olympics (Vancouver) Using y = number of medals won in 2010 x1 = number of medals won in 2006 x2 = whether or not a country was at home ŷ = 0.1283 + 0.9569x1 + 7.9270x2 s = 1.53 1. Does this regression model suggest that there was a home field advantage?

  5. Ex: Winter Olympics (Vancouver) Using y = number of medals won in 2010 x1 = number of medals won in 2006 x2 = whether or not a country was at home ŷ = 0.1283 + 0.9569x1 + 7.9270x2 s = 1.53 2. Calculate and interpret the residual for Iceland who did not win a single medal.

  6. Ex: Winter Olympics (Vancouver) Using y = number of medals won in 2010 x1 = number of medals won in 2006 x2 = whether or not a country was at home ŷ = 0.1283 + 0.9569x1 + 7.9270x2 s = 1.53 Calculate and interpret the residual for the U.S. which won 25 medals in 2006 and 37 medals in 2010. 3.

  7. Sum it Up • An indicator variableis a _________ explanatory variable with two possible outcomes. These outcomes are coded numerically so they can be included in regression calculations. Typically, a success is reported as a ‘__’ and a failure is recorded as a ‘__’.

More Related