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yael
Quartz | Level 8

Hello

 

I have a question regarding 0 (=zero) vs missing data.

 

If I have an observation that have many variables but one of the variable is not relevant to this observation (but relevant to other observations), should the value of this variable be 0 (=zero) or missing data (as I found there is a big difference between them in correlation matrix

 

Thanks a lot for any help!

1 ACCEPTED SOLUTION

Accepted Solutions
Reeza
Super User

If this is proportion on family directors it should be zero. 

 

Note that SAS excludes records with missing values so you need a 0. I'm assuming you have another variable that indicates if the firm is  a family firm. 

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4 REPLIES 4
Reeza
Super User

Missing typically referers to an unknown or unobserved value where 0 refers to a value that is observed to be 0.

 

Also, is it categorical or continuous? 

 

Given what information you've provided it's difficult to make a suggestion. 

Please provide more background information regarding your data.

 

 

yael
Quartz | Level 8

Dear @Reeza

 

Thanks a lot for your fast reply,

 

The varibale is FD ehich equal to  family directors/total directors, this variable is continous.

 

For the observations that relate to family firms, this variable has any value. But, my data also has observations which are non-family firms. I wonder if under this variable it should be zero or missing value?

Reeza
Super User

If this is proportion on family directors it should be zero. 

 

Note that SAS excludes records with missing values so you need a 0. I'm assuming you have another variable that indicates if the firm is  a family firm. 

yael
Quartz | Level 8

Thanks a lot, it really helps me 🙂

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