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- W127704614 abstract "This chapter presents regression analysis with a categorized explanatory variable and discusses the estimation and inference of a coefficient of a continuous explanatory variable when that variable is categorized for a variety of reasons. It discusses the implications of the frequently used approach of assigning a dummy variable to each category. The bias and the approximate correction terms of ordinary least squares method are derived when the mid-point of a category is treated as the observed value of the explanatory variable. The chapter discusses aspects of the maximum likelihood estimates and procedures to simplify their computations. It describes a two stage estimator and pseudo instrumental variable estimator. These estimators, although less efficient, are consistent. They require no more than minor modifications of existing computer programs and are easy to implement. The chapter explains the consequences of replacing the unobserved variable by the mid-point of the group that variable falls into." @default.
- W127704614 created "2016-06-24" @default.
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- W127704614 date "1983-01-01" @default.
- W127704614 modified "2023-10-16" @default.
- W127704614 title "REGRESSION ANALYSIS WITH A CATEGORIZED EXPLANATORY VARIABLE" @default.
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- W127704614 doi "https://doi.org/10.1016/b978-0-12-398750-1.50011-5" @default.
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