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MULTIPLE REGRESSION WITH CATEGORICAL DATA

MULTIPLE REGRESSION WITH CATEGORICAL DATA

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variable for the group coded 0. 2) Remember: the expected value of a random variable is its mean or E(Y i) = µ ii. β1 is the "effect," so to speak, of “moving” or changing from category 0 to category 1--here of changing from female to male--on the dependent variable. 1) Specifically, if β1 > 0, then the expected value of Y is higher

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