topic Linear regression Model 2 dummy variables of same categorical variables in SAS Programming

Linear regression Model 2 dummy variables of same categorical variables

pathakvishal — Wed, 29 Mar 2017 20:37:17 GMT

I am using PROc Reg (Selection = stepwise ) linear regression for banking data which has credit customer information for which we need to predict the factor affecting the usageof credit card. In output of PRoc Reg . My model is giving of the final factors(dummyvariable factors) as

dummy_card1 meaning( amex)

dummy_card4 meaning(discover), (both are types of primary ) refer to screenshot for more clarity

these card are primary credit cards

My question is can we have a final model in which we can have 2 dummy variables from same categorical variables .

Also , can we reduce the number of variable even after the output of ( selection = stepwise ). ?

P.s : I am naive in the world of analytics ..Thanx in advance

Re: Linear regression Model 2 dummy variables of same categorical variables

PaigeMiller — Thu, 30 Mar 2017 12:27:07 GMT

@pathakvishal wrote:

I am using PROc Reg (Selection = stepwise ) linear regression for banking data which has credit customer information for which we need to predict the factor affecting the usageof credit card. In output of PRoc Reg . My model is giving of the final factors(dummyvariable factors) as

dummy_card1 meaning( amex)

dummy_card4 meaning(discover), (both are types of primary ) refer to screenshot for more clarity

these card are primary credit cards

My question is can we have a final model in which we can have 2 dummy variables from same categorical variables .

Yes, of course you can.

Also , can we reduce the number of variable even after the output of ( selection = stepwise ). ?

Yes, you can do this too, but I wouldn't, because stepwise provides the result that if finds to be the best fit model. I would however recommend that stepwise isn't highly regarded by most statisticians these days, and perhaps something like PROC PLS might be a better alternative with multiple input variables that are correlated.

Re: Linear regression Model 2 dummy variables of same categorical variables

pathakvishal — Thu, 30 Mar 2017 17:33:26 GMT

Thanx Mate !!

@PaigeMiller wrote:
@pathakvishal wrote:
I am using PROc Reg (Selection = stepwise ) linear regression for banking data which has credit customer information for which we need to predict the factor affecting the usageof credit card. In output of PRoc Reg . My model is giving of the final factors(dummyvariable factors) as

dummy_card1 meaning( amex)
dummy_card4 meaning(discover), (both are types of primary ) refer to screenshot for more clarity
these card are primary credit cards

My question is can we have a final model in which we can have 2 dummy variables from same categorical variables .

Yes, of course you can.

Also , can we reduce the number of variable even after the output of ( selection = stepwise ). ?

Yes, you can do this too, but I wouldn't, because stepwise provides the result that if finds to be the best fit model. I would however recommend that stepwise isn't highly regarded by most statisticians these days, and perhaps something like PROC PLS might be a better alternative with multiple input variables that are correlated.