January 2019
Intermediate to advanced
378 pages
8h 27m
English
Dummy coding is a method where, if we had one column that had a student's favorite class as a predictor variable in one column, we would turn each class into its own column and then place a 1 in that column if it was the favorite class of the student, as seen in the following diagram:

Once that is done, then the next step is to actually drop one of those columns. The dropped column then becomes the base case. All the other cases are then compared to that case. In our IPO example using months as predictors, we will drop January, for example, and then all the ...
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