Dummy variable, Econometrics
To understand regression analysis with dummy variables, let us take an example of using dummy variable with structural changes in an economy. For example, there was a structural change in U.S during 1981-1982, and also a severe recession in 2007 and 2008. So when we...
Dummy variable, Econometrics
What are Dummy Variables? In regression analysis, we often need to include qualitative (categorical) variables — variables that represent categories rather than numerical quantities. Examples include gender (male/female), employment status (employed/unemployed),...
