answersLogoWhite

0


Best Answer

To interpret the coefficient of a dummy variable is to follow all of the steps of the equation that is being used as if the dummy variable was a real one.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How do you interpret coefficient of dummy variable?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Statistics

What is a dummy variable in Operations research?

There are various forms. In linear programming, a dummy variable may be used to convert an inequality into an equation. For example x < 10 can be written as x + u = 10 where u > 0. In this case, it is also called a slack variable. Dummy variables are used in regression to indicate the presence or absence of a factor, or for binary variables. For example, male/female could be coded numerically as 0/1 where, because the question is binary, the exact coding does not matter.


How would you interpret the findings of a correlation study that reported a linear correlation coefficient of -0.13?

There is not enough information to say much. To start with, the correlation may not be significant. Furthermore, a linear relationship may not be an appropriate model. If you assume that a linear model is appropriate and if you assume that there is evidence to indicate that the correlation is significant (by this time you might as well assume anything you want!) then you could say that the dependent variable decreases by 0.13 units for every unit change in the independent variable - within the range of the independent variable.


What percentage of variation in the criterion variable is accounted for by the predictor variable if the correlation between them is 50?

A correlation coefficient can only range from -1.0 to 1.0 so a 50 is not possible. Did you mean .5?


Which is strongest value for correlation coefficient -0.75 and 0.25?

The further the correlation coefficient is from 0 (ie the closer to ±1) the stronger the correlation.Therefore -0.75 is a stronger correlation than 0.25The strength of the correlation is dependant on the absolute value of the correlation coefficient; the sign of the correlation coefficient gives the "relative" slope of correlation line:+ve (0 to +1) means that as one variable increases the other also increases;-ve (0 to -1) means that as one variable increases the other decreases.


does The strength of the correlation between two variables depend on the sign of the coefficient of correlation?

No, it depends upon the size of the coefficient of correlation: the closer to ±1 the stronger the correlation.When the correlation coefficient is positive, one variable increases as the other increases; when negative one increases as the other decreases.

Related questions

How do you interpret coefficient of IV estimation in stata with ivreg?

Depends on the instrumented variable. For example if the instrumented variable x is a dummy (z an instrument) the way you should interpret the IV coefficient is, depending on the treatment of the endogenous variable y (logs, levels), in average, ceateris paribus, the effect over y of x is (b% or 100b%) for those observations for which the z is present.


How do you interpret coefficient of binary variable in linear regression?

This is my best shot. I've been trying to find this answer since I'm doing regressions right now. Let's say you have a dummy variable "male" where 1 = male, 2 = female. You regress: toads_owned = c(1) + c(2)*male You get the result: MALE: Coefficient: 2 T-test: 3.1 toads_owned = c(1) + 2*male So now, I think that means that if you are a male, you are likely to own 2 more toads on average than if you were a female. The coefficient on a dummy variable simply says how different you are from the base group (the group that equals 0) if you equal 1.


What is the number factor of a variable called?

The coefficient is in front of a variable.


Can a coefficient of a variable be negative?

Yes, a coefficient of a variable can be negative.


What is the coefficient and variable of 7x?

The coefficient is 7 and the variable is x


What is the number that precedes a variable called?

It called the coefficient of a variable. As an example 16x. 16 would be the coefficient and x would be the variable or term.


What is a number a variable?

the coefficient of the variable


What is the numerical factor when a term has a variable?

The numerical factor in a term with a variable is the coefficient. It is the number that multiplies the variable. For example, in the term 3x, the coefficient is 3.


Where is a coefficient located?

A coefficient is the number in front of a variable. For example, consider the expression '2y' y is the variable 2 is the coefficient


What is the difference between a coefficient and variable?

A variable is a part of a term which can change. A coefficient is a numerical constant, associated with a variable. For example, in the term 3x^2 , 3 is the coefficient, while x is a variable.


What is the coefficient of a term that consists of a single variable?

The numerical value that comes before the variable or, if none, the coefficient is 1.The numerical value that comes before the variable or, if none, the coefficient is 1.The numerical value that comes before the variable or, if none, the coefficient is 1.The numerical value that comes before the variable or, if none, the coefficient is 1.


What is the number before a variable?

the coefficient of the variable