All Questions
2 questions
0
votes
1
answer
69
views
OLS model specification that includes all dummy variables with a predetermined coefficient
I'm working with a OLS model that includes dummy variables (quarters of year). Here's what I would specify it:
$$y = \beta X + \gamma_1Q_1 + \gamma_2Q_2 + \gamma_3Q_3 + \epsilon$$
However, in the ...
- 769
4
votes
1
answer
3k
views
VIF Drops Significantly When I Delete Some Dummy Variables
Is my model valid even with the high VIF? Does it matter which dummy variable I drop as the reference point?
I have a a category variable (Fruit) that I converted ...
- 205