In this course, you will learn how to use qualitative information in regression models through the application of dummy variables.
We will start by discussing the issues of using categorical variables in regression analysis. Then, definition and creation of dummy variables will be explained. Next, we will learn how to use dummy variables in regression models with real dataset. The final section of this course highlights some important considerations when using dummy variables such as dummy variables trap, interpreting logarithmic dependent variables, and the correct way to choose the reference group.
On completion of this course, you will be very confident in incorporating and interpreting dummy variables in multiple regression models.
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