Three Variable Regression. Y ˆ ˆ X ˆ X uˆ Yˆ β β β uˆ. Calculation of Regression Coefficients The normal equations for this multiple regression are.
If race 3 x2 -5. Instead of one dummy code however think of k categories having k-1 dummy variables. If race 3 x1 224.
Calculation of Regression Coefficients The normal equations for this multiple regression are.
If race 3 x2 -5. Here we test whether HH SIZE has coefficient β 2 10. 33 Regression with a 123 multicategory variable Regression with a multicategory more than two levels variable is basically an extension of regression with a 01 aka. There are 5 observations and 3 regressors intercept and x so we use t5-3t2.