You are using ""state"" a categorical variable in your linear regression model with 50 possible values. How many variables will this variable ""state"" should be expanded for your model?

Question

Computers and Technology

Brooklyn Jarvis

15 September, 06:28

You are using ""state"" a categorical variable in your linear regression model with 50 possible values. How many variables will this variable ""state"" should be expanded for your model?

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Answers (1)

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Jayvon Molina · Answer 1

49

Explanation:

Categorical variables are variables that take on values that are names or labels. They are not numerical, they contain a finite number of categories.

In this exercise, i will first convert "state" into a dummy variable, and use one hot encoding that uses one column for each value to compare all other values and produce estimates for n-1 states which in this case is 50-1 = 49.