Lesson 11: Binary Variables

February 28, 2017

Tue, Feb 28

Review:

Presentation:

  • Binary variables
    • also known as “Dummy” variables
    • also known as “Indicator” variables
    • value must be either “1” or “0”
  • Demonstration with Real Estate Sample data 
    • create binary variable in separate column with only 1 or 0
    • run regression with the new binary column
    • the coefficient multiplies by 1 if the condition is present
    • the coefficient multiplies by 0 if the condition is not present

Activity:

  • Use the East Pueblo RE Sales 2014-2016 (Sheets)
    • Build upon your multiple regression model from last week
    • Add a Binary variable using the “Sub Area” variable

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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