Date2o /0l/ 22
Assgnment T: Dummy VOiallod
Paiya Mundhua
22060 24 20S3
Aummy
A
vauabl
a
durs
vatnhl
ha
we
cuestin
OON1em analysis b Repsesenta cagoical vaaiobl as
humolial value (n enay
em) Such vakiables
do not have any nahaal Scds
moaAusoment and
holp
kolp
cla
the dalainho
mully
excusio atgorie
nolalon hen 'D h
donot0 a dunnyvaiabla
we
A monhoned abene
h
vauo! as nen_in hinay
onoexanpl
D
in
Hoo
a
1
O
dalaset
can iH Say
Gat
pecon
nal
a
pons@n is female
catugou cal sasiable Sex
i
is
dummy yoaiablu D h
o l Easenhall thay ad
vasiablos
merhenad wnwe Can ue
sho
whothoa iu male
diche oneu panhtah
ThL
aL hoo Hpe dummy Vaaiables a
explained
koloo
Tnt cept dumm
vaRiable
A dummy v09Aable tkat caphas a shin
as a
ult
some
u
naliah ue acho i
inteeest
an
inteAcept dunmy VGRIable
let
a
RegAesien equhen ka ah
as
#learnthesmarterway
Date
si3
the
Let
RL
ko
a
p
cha: m tho
dummy
aabu
s
aphy
2
D
adoig
P
Neo
tu
eKpaased
dui2able nanh kstared
un-deiaable
n
neaghboushasd
O we oblein
rd
Bo t SD
S t et
expocted, ae h o u EP)
is
a
D,it
inte copt
2ings
CaseiE in&ease
The
2
when Dwhen
Not
can
as
EP)(otS)t2S
D
y
pep
such th
in
s
pehy
Now,
and S
paopexy
the paico a
he house
uoheae
dummu
D d
Re camse
whenn
ae ou a changein t
in e
e A taaen
dt
e
in tes copt tums l
dusappeas eelause
ECe)-O
Stope Dummy v09uable
h
duummy yaAableallaws
h
uldhenah
dupondun
f:Vair
1
kahoeen
a
the
change in the shpe
indapendunt and
vosi abla
the
th
th eano manhorndakone
ulahevhnp
Sqase oo
one value o
is
uurg
home
yalue o
aA
e
nadustaable
an
sslaee
Loree
addihdoralL
a3uma t
nghlaoushood
#learnthesmarterway
Dote
cunotho value fos homeS in
and
speca
us modtl a
o
H
ige
t
othes neighoous hood we
B, S1
vasiableSD IS h
S) and
inDaadHen t
C
ptoduc e
e
uummy yORIable (p)_and t
o
)Di
ySD
Locah
and
howe
caphuADS
size
he houre
slope dwmmy vaaiolble hee.
noule Ca
n
as
EC) 5 Po 161S yS
D
wnen
hen
LBo1S
D
whn
D=0
when
RAR
æ
in a
deialole
h
neghbouaboool tthe
home isBa tY quase
intcep leam
and
neighoousood jti PL:
oA ise
2ice
a
Poetaddihinoll
i:
i
tu
anon-doietlbiu
sqvasu oot
To avod th dummy Vaiabl tRap, we always CenSldeh
-1) dummy viable wha thea ao
catugoaes
The Dollo uwing exampe will eucdate
VaaiooleS
low
b
we dumam
dummy
#learnthesmarterway
Date
In the
gien dala set in_attached
ant
K
ason
o
use
pAadict
ethniu
0u
haue ho
the
t
thou
Tn Dsdb
ne
os
a
hniay
TAom w
in
we
the
mear
the
LOAsem
explaaned
utpuu,
n&ome
Ca
ve
ay
four
need hb
14276.11+
h
value
we Lan haue
and 2laLk
excel astachod)
ip ha
AsIan
ta
Similaaly al e
ent
tar
The tod
by
644s(Age)r
2499.44 34 "(kciaw)
upu
we
COn ee tha
th columu
ot
ca ke
300sai0m i n e
he
in tho modol we
dummy yauables (Repes h
HispomC
entaies
lase
R
e
tha
peASm
th
unda
aoto t
dodAsek
8lada
oUAe
dummy vajable Since
ous
a t is adses O
Qnd
A
ode
vasiable
we
2 dummy vasiabus
haanoamad
the
a
Tn
oat 1hà dumn vasiab
Hispani
and Asian
Tn
ino
3categou es
3-
hame
it
e heeb)
ethnici ty
Income
ndopondent
Cenuea
OAA
and
OQe
a
excol
palaions
839t. 4039 (Black)
COn ke ma
m the
lable
#learnthesmarterway
Date//
e s e the
JnLnu
mtescept
a
indavidual
ehouty ku
D
yas old
hete
0
an
an
tD
n
An
e
cant
inm a t 0
the
ht
ys old)
ntecept k
tsel
the
agethe mma the
14. 69 Hu t
p-Jalue
i t is a
indiahi:
)
Rupaesent
individual
inTeapaut
.
ky
hne
oss
RS. 14276. 114
have
inceeoe
ingane
is 0 00y< 0
intu
cenn
unit
will
pesson
is
i9A0spoche h n age Cnd
nt
tsdoesntake
Wi witha
tam
slais fhically signihant
Asian peALOn easns raete KS: 244434. moRe han
pRhs em Sinu
HSpanc
value is0-03> D.05
dtencin_intoe is nat shhchicaluy signikcant
h e Black eASon eanc Ks3399.403q lss Kan a
Rispanit peison : Hu thap-vaue i 0-0s3 70-0S
waiheona isinteme is also not sahsh cally sigmcant:
0.4003- we can say 0a
Vaue S
40-08
tho
ky
aaiadion
in
t h Model
can e
eyplauned
change Theindgponolerdt vaalleu The ad R s
Nen wAeA
|Haa, Since hoth t
Signlaank
we
Can dsop
Indopeslont yQabe
enroA bo)
valu
dummya VGAaldles
o
Etbaice Dthnt uby
om the modb
sine
th modl.
as not slaichalls
not
(has high slandard
adding Oy paaoichve
#learnthesmarterway