Video 5: Dummy Variables

This video discusses what are dummy variables, how do we construct them, and how do we interpret their coefficients in a multiple or multivariate linear regression.
TABLE OF CONTENTS:
00:00 Introduction
00:10 Continuous vs. Categorical Variables
01:48 The Problem with Categorical Variables
02:52 Dummy Variables: Representing Categories
03:48 Data for Example: Professors’ Salaries
05:27 Exploring the Data
08:48 Representing Two Categories: Qualification
09:39 Data Table with Professional Dummy
10:02 Regressing Salary on Qualification
11:50 Comparing Salaries by Qualification
13:02 Qualification Regression Result
13:44 Interpreting the Coefficients for Qualification
14:45 More than Two Categories: Rank
15:43 Regressing Salary on Ranks
17:52 Data Table with Rank Dummies
18:19 Rank Regression Result
18:48 Interpreting the Coefficients for Qualification
21:14 Rank Regression Result (excluding assistant)
22:45 How do we interpret these?

Пікірлер: 158

  • @cedq4957
    @cedq49574 жыл бұрын

    Man, it is really worrying to me that a 20 minute video taught me a lot more than 3 hours in class with our professor...I feel like so much money is spend for nothing in the academic world

  • @MrSpiritmonger

    @MrSpiritmonger

    2 жыл бұрын

    school is to weed out people who can follow instructions and good memory. KZread can sometimes teach you A LOT more than school. (I have a PhD and two masters and undergrad from top 10 university)

  • @yiminshi5362

    @yiminshi5362

    2 жыл бұрын

    @@MrSpiritmonger My god, this video answered all my questions that I couldn't figure out by watching our professors video over and over again.

  • @eone3102

    @eone3102

    11 ай бұрын

    How are you sure it is your professor and not your will power, focus and attention that made the difference.

  • @Skritsky
    @Skritsky3 жыл бұрын

    This series of videos seems to be the best of its kind. Thank you!

  • @larrylaw3693
    @larrylaw36936 жыл бұрын

    Can't thank you enough prof! Really simple yet elaborated explanation! :)

  • @Hans-pc1vc
    @Hans-pc1vc7 жыл бұрын

    Best video I have encountered on this topic. Thank you!

  • @Hari-cz3od
    @Hari-cz3od6 жыл бұрын

    Such an art of teaching! Grateful to your video that saves me in both Econometrics and Data Science graduate classes. The series should be introduced to much more learners! Thank you so much!

  • @sitinurhidayusharin1892
    @sitinurhidayusharin18924 жыл бұрын

    The explanation on each detail really make me understood this topic even better. Every examples and detail really give the clear picture of this topic.

  • @rasyimahramli5b125
    @rasyimahramli5b1254 жыл бұрын

    I glad that I watch this video. The explanation really great, compact yet concise. As a university student its easy for me to understand the content. Thank you so much for your great work.

  • @najihaazhar8634
    @najihaazhar86344 жыл бұрын

    The explaination about the dummy variable as you have explained using more than one examples is really helpful. I manage to undertand the dummy variables rather than before.

  • @mehrzadbaktashbaktash2559
    @mehrzadbaktashbaktash25596 жыл бұрын

    The best video I have ever watched about the dummy variables! Thanks a world!

  • @josvandeneynde5849
    @josvandeneynde5849 Жыл бұрын

    Nice and well explained video. Saved me a lot of time going through old text books where intuition about these concepts is often much more difficult to get. Keep up the good work dataminingcae!

  • @eveo2223
    @eveo22235 жыл бұрын

    Simple and concise, easy to understand! Thank you!

  • @nurasyikinsharif3387
    @nurasyikinsharif33874 жыл бұрын

    This video is so great! Before, I only understood this topic on the surface, after watching this, I now know how to further interpret the dummy variable better. This video also helped as reference for my assignments!

  • @yiakhangpaxang8086
    @yiakhangpaxang80863 жыл бұрын

    This is the greatest explaination. Thank you so much for your help and kindness. You are the best professor

  • @AmitSingh-pe2xw
    @AmitSingh-pe2xw2 жыл бұрын

    This is one of the best explanation for dummy variable. Thank you so much for your help and kindness. You are the best professor

  • @sitinuraisyahmohdhawari9295
    @sitinuraisyahmohdhawari92954 жыл бұрын

    The examples used in this video are easy to understand, plus with your interesting way of explanation. I am glad that this video exist. Thank you for this great video.

  • @dianaelysha4524
    @dianaelysha45244 жыл бұрын

    Explanation using some example are exactly the way to make me more understand 😍Now I'm getting better in understanding dummy variables. Good job 👍🏻

  • @akkshaichand6555
    @akkshaichand65553 жыл бұрын

    Thank you so much for this! You made the concepts easy to understand.

  • @tald747
    @tald7473 жыл бұрын

    An excellent explanation of this subject covering all aspects! Thanks.

  • @anisafifahfarzana326
    @anisafifahfarzana3264 жыл бұрын

    At first, it is complicated for me to understand on how to interpret when we have more than two categories, but then I manage to understand clearly based on your explaination. It is very interesting video with a great graphical example.

  • @nurulainnadhirah4379
    @nurulainnadhirah43794 жыл бұрын

    The concept of dummy variables was very clearly explained. As a student, it's easy for me to understand the content after I watch this video. Thank you so much for helping me.

  • @somcana
    @somcana5 жыл бұрын

    thanks to You sir. i feel humbled you are even thanking us.

  • @amirulezuar9754
    @amirulezuar97544 жыл бұрын

    For this video, it shows and helps how to interpret coefficient with two categories

  • @anatimahmud3823
    @anatimahmud38234 жыл бұрын

    the example you give makes me more understanding about the dummy, especially on how to use it and interpret it. During this pandemic, your video is very suitable for us students to learn about the dummy variables.

  • @nurulisfahani108
    @nurulisfahani1084 жыл бұрын

    From the video, now I know much better and understand how to interpret coefficients in regression analysis. The explanation is very well to understand by using graphics. Thank you sharing the input.

  • @chanle5989
    @chanle59896 жыл бұрын

    Thank you so much! I really needed this for my thesis!

  • @shafeqahsaifullizan5a601
    @shafeqahsaifullizan5a6014 жыл бұрын

    From the video i understand how to interpret the two categories. Also the problems of variables. Thank you so much for this knowledge. 👍

  • 9 жыл бұрын

    tks so much! That's what i'm looking for.

  • @kaushikbhadresha
    @kaushikbhadresha3 жыл бұрын

    Simple, crisp and made is very easy to understand. Thanks

  • @haziqahabdhamid8194
    @haziqahabdhamid81944 жыл бұрын

    The explanation is precise and great. It make me more understand about dummy variables. Thank you so much for this great work.

  • @anisasyhikeen5448
    @anisasyhikeen54484 жыл бұрын

    I found an easy way to interpret the coefficient when we have more than two categories. This video helps me a lot on understanding about dummy variables.

  • @sitinursyazwana5031
    @sitinursyazwana50314 жыл бұрын

    As a student this video is truely make me more understand. The explanation is very easy to understand with the example. Now I know on how to interpret more than two categories through this video.

  • @noorshahirasamsudin5713
    @noorshahirasamsudin57134 жыл бұрын

    I think i more understand about this topic thanks to your good explanations. Its very interesting and not boring at all.

  • @fatinaliah7287
    @fatinaliah72874 жыл бұрын

    The explanation with example really help me to understand more on this chapters. Thank you

  • @cazung119
    @cazung1194 жыл бұрын

    Thankyou so much for your teaching sir. You just saved my life I was very frustrating because I get confused more and more I couldn't wrap my head around all those terms and complex interpretation in my study and textbooks and need to do assignment. Now I have understood better and clear. Thankyou Thankyou Thankyou.

  • @ds68889
    @ds688896 жыл бұрын

    your teaching is so clear, thanks a lot!

  • @nurulamira8975
    @nurulamira89754 жыл бұрын

    Its look very hard to understand at first, but then when you come out with good example I manage to be more understand on how the dependent dummy variable changing depending categories. Thank you for very simple explanations .

  • @ShivamGupta-yl4ir
    @ShivamGupta-yl4ir5 жыл бұрын

    Best video ever seen on this topic..

  • @nurfatinsyuhada5593
    @nurfatinsyuhada55934 жыл бұрын

    From the video now I know how to make a solution and interpret dummy variables coefficients even in multiple or in multivariate linear regression . It helps me a lot in understanding the lecture given because it gave us some simple examples for us to understand

  • @ispinozist7941
    @ispinozist79416 жыл бұрын

    Well done 👏🏻 I will note that the final model has an adjusted R squared suggesting that 28% of variability is explained by the IVs, which is interesting in and of itself.

  • @syazninajwa5b183
    @syazninajwa5b1834 жыл бұрын

    after watching this video, now i become more clearly about dummy variables and the way to construct and interpret their coefficient. thanks for this video and explanation. its also interesting.

  • @ismahnadhirah3756
    @ismahnadhirah37564 жыл бұрын

    I have difficulty to understand on how to interpret when we have more than 2 categories before, but with your useful explanation, i can understand it clearly now. Thank you for your explanation

  • @Mgilsy
    @Mgilsy8 жыл бұрын

    Wauw! This video is absolutely great. Good job!

  • @nurfarrahumairah3475
    @nurfarrahumairah34754 жыл бұрын

    From this video, i can know how to interpret the coefficients in a multiple and multivariate regression because the lecturer using the simplest example to understand what actually he talking about. Thanks for this interesting video !

  • @liaalia789
    @liaalia7894 жыл бұрын

    By watching this video, it help me to understand more about what dummy variable is. It helps me to understand how to interpet the coefficient. Thank you for you explanation

  • @yan7133
    @yan71334 жыл бұрын

    It hard to understand on how to interpret when we have more than two categories, but then I manage to understand clearly when watch this video. I am glad to watch this video. It is very interesting video as it simple explanation that make me more understand.

  • @E.Khan04
    @E.Khan045 жыл бұрын

    Amazing, awesome, fantastic.... are very small words for your videos..... I just love you!

  • @fatinhanani9423
    @fatinhanani94234 жыл бұрын

    Thank you so much, this is what im looking for. I can refer to this video for additional info !

  • @Pommespanzerzockt
    @Pommespanzerzockt5 жыл бұрын

    Hey man. Just wanted to let you know my Uni links to your vids as preparation, and you do them very well. Thanks for everything!

  • @shahriarkhan6466
    @shahriarkhan64663 жыл бұрын

    Thank you for making it so simple to understand.

  • @shadrinan90
    @shadrinan902 жыл бұрын

    Thank you for such clear explanaitions!

  • @azrulamizan2127
    @azrulamizan21274 жыл бұрын

    This video really make me understand how to interpret the coefficient. Really usefull. Thank you

  • @nykollas6601
    @nykollas66016 жыл бұрын

    Exceptional work !!

  • @meghangohil5780
    @meghangohil57804 жыл бұрын

    Thanks - this was a really clear explanation of dummy variables.

  • @saclay5032
    @saclay50322 жыл бұрын

    Thanks a lot for this video and for the other ones, it helped me a lot!

  • @datascience1274
    @datascience12742 жыл бұрын

    Fantastic lesson. Thank you so much. It helped me immensively

  • @nurizzatiahmadshukri6923
    @nurizzatiahmadshukri69234 жыл бұрын

    Your explanation was very helpful. Before this I have problem on how to interpret the coefficients but now I'm bit understand compare than before.

  • @Jjjj24971
    @Jjjj24971 Жыл бұрын

    thank you for teaching everyone.

  • @alifradzali6961
    @alifradzali69614 жыл бұрын

    It all about the dummy variable and i slowly learn what is dummy variable. How to use and and interpret it in the coefficient in a multiple or multivariate linear regression. It take time for me to understand it. However, i like your video because giving a simple example to make me understand more about it. Thanks in advance. :)

  • @HK-no9wm
    @HK-no9wm4 жыл бұрын

    Excellent explanation. Thank you so much

  • @bhaktikelkar499
    @bhaktikelkar4994 жыл бұрын

    Thanks a ton! This video was extremely helpful

  • @nurfarishaizwanie2082
    @nurfarishaizwanie20824 жыл бұрын

    good video because he keeps me more thinking. good information.

  • @shresthasaha9281
    @shresthasaha92813 жыл бұрын

    this is an excellent video !! thank you prof.

  • @Sky-nr9pm
    @Sky-nr9pm4 жыл бұрын

    Your explanation so clear..it easy to understand. Thank you for sharing. It help me a lot..

  • @amosavi4730
    @amosavi47306 жыл бұрын

    Very clear and useful... Thanks a lot

  • @muhammad-dc4hm
    @muhammad-dc4hm4 жыл бұрын

    This video really help me to understand about dummy variabe and how to interpret these coefficient. :)

  • @justinfong2388
    @justinfong23886 жыл бұрын

    Great video, so clear

  • @kiranthota5137
    @kiranthota51374 жыл бұрын

    my brain says cool. soft voice & good way of explination, all the best for your career, try to explore more

  • @farahnadiah2308
    @farahnadiah23084 жыл бұрын

    It is very useful for me due to the explanation and the example are close to me as a student. It make me figure out what dummy do and how to explained it.

  • @nanaheyy_
    @nanaheyy_4 жыл бұрын

    thanks ! great explanation about dummy variables and it helps me a lot as a student

  • @abdulhadi5b263
    @abdulhadi5b2634 жыл бұрын

    Thank you for your explanation. I hope it help me to answer the test question. This video help me a lot how to understanding dummy variable

  • @debk4516
    @debk45165 жыл бұрын

    wow..thanks you so much for this video

  • @thomashunterguitar7379
    @thomashunterguitar73796 жыл бұрын

    the last bit was what i needed

  • @stivosaurus
    @stivosaurus8 жыл бұрын

    Very nice explanation. My brain was hanging up on the meaning of the coefficients, but the idea seems obvious now.

  • @ivancarrascoq
    @ivancarrascoq6 жыл бұрын

    good explanation man! thanks.

  • @vilochanmuley1889
    @vilochanmuley18893 жыл бұрын

    Awesome example and explaination👍

  • @ProfDilley
    @ProfDilley9 жыл бұрын

    Thank you for such a fantastic video! The concept of dummy variables was very clearly explained. This video is much better than all others out there I have seen posted on a similar topic. Thanks again!!

  • @AntuAichbd
    @AntuAichbd7 жыл бұрын

    Thanks a lot. The video is very helpful :)

  • @mahzaibyounas2106
    @mahzaibyounas21066 жыл бұрын

    thanks you have cleared all ambiguities

  • @dai7169
    @dai71695 жыл бұрын

    Great video, thank you very much

  • @bellainasia6107
    @bellainasia61076 жыл бұрын

    very great video.thank u so much

  • @nurulnajihah9499
    @nurulnajihah94994 жыл бұрын

    Thank you for your explanation 👍, now i can understand better

  • @ziweiyong3634
    @ziweiyong36348 жыл бұрын

    this is truly helpful!!!!!! Love U

  • @pradeepasivanesan
    @pradeepasivanesan4 жыл бұрын

    Thanks a lot. Really helpful.

  • @imadeadblueangel
    @imadeadblueangel4 жыл бұрын

    i struggled understanding what is this dumb*** dummy variables are the entire semester and got 0 for interpreting the coefficient wrongly in mid term exam, thank god i found this video!!! make sense now on the comparing expected salary of treatment group to the control variable!!! thank you, you are awesome!!!!

  • @lm2182
    @lm21823 жыл бұрын

    thank you for the amazing video

  • @devawratvidhate9093
    @devawratvidhate90936 жыл бұрын

    Thanks for very simple explanation but How can we handle when we have around 20 Nominal and 20 ordinal categorical data . I face such problem in during Ames Housing data....? and finally if we use your method how we can perform feature selection...? because for that I have to consider whole column in your case (like qualification ) if particular levels of column are less significant then on what criteria we should select or drop that column

  • @clarawolf5569
    @clarawolf55694 жыл бұрын

    You're the best. Thank you...

  • @ekwuemeanthony3870
    @ekwuemeanthony3870 Жыл бұрын

    Kudos to you dear we appreciate your efforts. thanks 👍👍👍 👍

  • @timedullantes571
    @timedullantes5714 жыл бұрын

    thank you very much for this video

  • @nisajamail7225
    @nisajamail72254 жыл бұрын

    Thank you for the video. I think, I am more understand with dummy variables and why we used of 0 and 1 at the e-views data.

  • @nurulhusna3593
    @nurulhusna35934 жыл бұрын

    It give me input about regression. Thank you

  • @rojinkoohkord7865
    @rojinkoohkord78658 ай бұрын

    Thank you so much.

  • @ahmadsafwan5801
    @ahmadsafwan58014 жыл бұрын

    This really help me in understand for my ECO 545 subjcet chapter. I hope this understanding will help me to answer my test tommorrow on 30 june 2020. Wish me luck guys.

  • @nightmaremodeonlife
    @nightmaremodeonlife7 жыл бұрын

    can the formula (XtX)-1*(Xty) be used to calculate the b matrix while using dummy variables? if yes how or if not then how can we calculate b1,b2... without using any software while using dummy variables??

  • @vineethdas4160
    @vineethdas41604 жыл бұрын

    Perfecto!!!! Just one word..!!

  • @jimivie
    @jimivie4 жыл бұрын

    dude you are amazing. 10 out of 10

  • @shambo9807
    @shambo98074 ай бұрын

    This is so clear

  • @arthienaresh9409
    @arthienaresh94093 жыл бұрын

    so helpful omg too certi broski love for that my g

  • @heidisteiner5878
    @heidisteiner58787 жыл бұрын

    Thank you!!

  • @meriemeennajah7459
    @meriemeennajah7459 Жыл бұрын

    Thank you