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Dummy variable and multi regression

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ledangthanhnam Dummy variable and multi... 01-21-2011, 08:16 AM
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    01-21-2011
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    Excel 2003
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    Dummy variable and multi regression

    Hi all,
    I got a small question i want to ask. I got a question to the multiple regression:
    WAGE=B1 + B2 EDUC + B3 EXP + B4 FEMALE + B5 WHITE + B6 WEST + e

    In there : FEMALE = A dummy variable that takes a value of 1 if the individual is a Female and takes 0 otherwise

    WHITE = A dummy variable that takes a value of 1 if the individual is a White and takes 0 otherwise

    WEST = A dummy variable that takes a value of 1 if the individual is From West and takes 0 otherwise

    The problem I got is in the EXP data ( you can find it in the sheet name "data" in the file i attach below) there are some 0 variable, and when i do the multi regression if i chose "constant is 0" to avoid dummy variable (Female, White, West) the 0 in exp will also be taken as dummy variable and i got a difference result on my simple regression for EXP.

    I got 2 plan for this question : 1 is take it as dummy variable, the other is not. Can anybody help me solve this problem? Thanks a lot.

    Regards,
    Nam
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    Last edited by ledangthanhnam; 01-22-2011 at 08:15 PM.

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