I've got several dummy variables that I'm combining into two factors, so
FACT1 = DUM1 + DUM2 + DUM3 FACT2 = DUM4 + DUM5
Because there's a different number of dummies going into each factor, I thought I'd better normalize them so they're comparable on the same range.
FACT1_n = FACT1/3 FACT2_n = FACT2/2
Now I want to fit a model
y = a + b1(FACT1_n) + b2(FACT2_n)
and I'm not sure how to interpret the coefficients.
Is this even the right way to go about this?
EDIT: I should note that I'm not asking how to interpret coefficients on dummy variables. I'm asking about how to interpret a coefficient on a sum of dummy variables that has been normalized.