Regression model dummy variables
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At times we need to include a dummy variable in the regression model. Provide an example of a multiple regression model that includes a dummy variable and that can be used to predict an outcome in your department or life. What assumptions do you need to make concerning the slope between the dependent variable and the numerical and dummy variables?
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Solution Summary
The Solution provides an explanation of how dummy variables are used in a real life scenario.
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An example regression model:
Time to reach office = a1 +b1*Mode of transportation+b2*Day of the week+b3*Route to office
Here my dependent variable will be "Time to reach office" and independent variables will be "Mode of transportation", "day of the week" and ...
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