Hey, assuming you have 5 categories for a certain variable, and you create 4 dummy variables. You run the regression and it turns out that 1 or 2 of the dummy variables are found not significant.
For example if you have X1a, X1b, X1c, and X1d, and the regression shows that X1a and X1c are not significant but the other two are. Now how would you interpret the reason they are not significant. Would you say they are redundant/irrelevant compared to the base case (dummy category), or would you say they are redundant/irrelevant in the regression and then go on to explain that when all else is constant, the effect of X1a and X1c on the dependent variable would not differ from the base case? Been searching forever for an answer but it seems to be very difficult to find interpretations in statistics :/ Thanks for any help.
2006-12-05
01:04:54
·
2 answers
·
asked by
Hasbeen
1
in
Mathematics