Linear regression Model 2 dummy variables of same categorical variables

[pathakvishal]

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 

[PaigeMiller · Accepted solution]

---

@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.

[pathakvishal]

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.

---