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Re: st: Some help on coding the categorical variable

From   Nick Cox <>
Subject   Re: st: Some help on coding the categorical variable
Date   Wed, 11 May 2011 08:28:59 +0100

This depends on what your "analysis" is, which is completely
unspecified. If you wish to produce equations with your categorical
variables included, then the second coding may produce equations that
are simpler to interpret, but for most purposes I see little practical
difference here.

On Wed, May 11, 2011 at 8:12 AM, prakash singh <> wrote:

> In my analysis I am having few categorical variables where the code
> for the categorical variable is: 1 for increase, 2 for no change and 3
> for decrease. Now I need suggestion that whether I should change the
> code to -1 for decrease 0 for no change and 1 for increase or I should
> go ahead with same coding for the empirical exercise.
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