The SMC remains however more computationally efficient in the case of symmetric dummy variables since it doesn't require adding extra dimensions.
32.
For example, the effect of race ( nominal ) on income ( ratio ) could be investigated by dummy variables that specify race.
33.
A variable which codes for the presence or absence of such a property is called a binary categorical variable, or equivalently a dummy variable.
34.
The SMC remains, however, more computationally efficient in the case of symmetric dummy variables since it doesn't require adding extra dimensions.
35.
Again, it should be stressed that the equivalence between these three representations of the same decision-making situation makes no use of dummy variables.
36.
Other frameworks focus less on the choice dynamics and consider a random coefficient setting for the different treatment options, or use dummy variables for the different possible treatments.
37.
When the qualitative dependent dummy variable has more than two values ( such as affiliation to many political parties ), it becomes a multiresponse or a multinomial or polychotomous model.
38.
Dummy variables are " proxy " variables or numeric stand-ins for dependent variable, while when the dummy takes on a value 1 its coefficient acts to alter the intercept.
39.
For example, a researcher might want to predict whether someone goes to college or not, using family income, a gender dummy variable, and so forth as explanatory variables.
40.
Here the variable to be explained is a dummy variable that equals 0 if the observed subject does not go to college and equals 1 if the subject does go to college.
