# How do you interpret LASSO dummy coefficients?

Let's say I have the typical ANOVA where X has 3 categories and I one hot encode. I then have: $$Y = b_1X_1 + b_2X_2 + b_3X_3\text{ ,}$$

where $$b_1, b_2, \text{ and } b_3$$ are basically how much mean$$(Y | X)$$ deviates from 0 (and if the deviation is significant or not)

Now let's say I build a LASSO and it happens so that one of the coefficients go to 0 so my resulting model is: $$Y = b_1X_1 + b_2X_2\text{ .}$$

How do I interpret $$b_1$$ and $$b_2$$? Like how do I relate that to means?

Thanks!

• stats.stackexchange.com/questions/209009/… Sep 25, 2021 at 0:44
• @Maxtron I like that link and agree that the OP should read it, though I do not believe this is a duplicate.
– Dave
Sep 25, 2021 at 0:48

$$\dfrac{\sum_{i=1}^n(X_i-\bar X)^2}{n}$$
$$\dfrac{\sum_{i=1}^n (X_i-\bar X)^2}{n-1}$$
$$\dfrac{\sum_{i=1}^n(X_i-\bar X)^2}{n+1}$$