Hello, In this formula Lnw = lnw0 + b1E + b2H + b3EX + b4EX^2 + b5T + b6M + b7N

ID: 3121230 • Letter: H

Question

Hello,

In this formula

Lnw = lnw0 + b1E + b2H + b3EX + b4EX^2 + b5T + b6M + b7N

E: education

H: Working hours

Ex: Working experience in years

T: training period in months

N represets the nationality (It might be UAE national or Arab)

M: Gender where the base is male

1. How do I assign dummy variables to nationality?

2. I have city working in variable where it might be Abu Dhabi or Dubai or Other Emirates... How do I assign dummy variables?

3. I have government or semi-government or private sector. How do I assign dummy variables?

4. I have 3 marital statuses, single or married or other: How do I assign dummy variables?

Hello,

Ans. 1: As you have just two nationalities UAE or Arab, you could use just one dummy variable for it.

Ans. 2: As you have 3 values, so you should use two dummy variables for it. Use Other Emitrates as a reference category and create 2 dummy variables:

City = aX + bY

X = 1, Y= 0 (If Other emirates)

X = 0, Y = 0 (If Abu Dhabi)
X = 0, Y= 1 (If Dubai)

Similarly you may assign dummy variables in other questions as well. Use 2 dummy variables in the Ques. 3 and 4. Hope it helped you.

Thanks

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.