Non-continuous variables 08B

Non-continuous variables 08B - 1 Regression with...

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Unformatted text preview: 1 Regression with categorical independent variables ESM 206B 15 Jan. 2008 2 Types of variables Numeric • Continuous – Observations can take on, in principle, any real number – Infinite # of possible values between 1 and 10 • Discrete – Observations can take on, in principle, any integer – 10 possible values between 1 and 10 Categorical • Dichotomous: – Male/Female – Pre-regulation/Post-regulation – Island/Mainland • Nominal (“nom” = “named”) – Continent – Political party – Soil type • Ordinal (“ord” = “ordered”) – Survey response: strongly disagree, disagree, neutral, agree, strongly agree – Size classifications: small, medium, large – Income ranges 3 Dummy variables • How can we handle “categorical” explanatory (independent) variables in a regression? • Answer: make a dummy! • Dichotomous: zero or one • Categorical with q categories: q-1variables each scored zero or one (examples to follow) 4 Alien Species • Exotic species cause economic and ecological damage • Not all countries equally invaded • Want to understand characteristics of country that make it more likely to be “invaded”. • We’ll measure “invasiveness” as fraction of species that are Alien • Two hypotheses 1. Human population density plays a role in a country’s invasiveness. 2. Island nations are more invaded than mainland nations. 5 200 400 600 800 1000 1200 0.0 0.1 0.2 0.3 0.4 0.5 0.6 Pop_dens Prop_exotic Mainland Island 0.0 0.1 0.2 0.3 0.4 0.5 0.6 Island Prop_exotic 6 A Simple Model • ISL is a Dummy variable , coded 0 if mainland, 1 if island • Dummy changes intercept (explain). i i i i P ISL A ε α α α + + + = 3 2 1 7 Call: lm(formula = Prop_exotic ~ Pop_dens + Island, data = ExoticSpecies) Coefficients: Estimate Std. Error t value Pr(>|t|) (Intercept) 7.944e-02 2.708e-02 2.934 2....
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Non-continuous variables 08B - 1 Regression with...

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