Coding of the Independent Variable in Yield Function Calculations1
- Jorge A. Escobar Giron and
- F. B. Cady2
Coding or transforming the independent variable(s) in regression situations affects estimation and hypothesis testing. Methods are developed for understanding these coding effects and a table presented with the factors required to calculate easily the estimated coefficients and subsequent t-statistics in one system of coding from another. The systems of coding include four commonly used codings of the original values. A worked example of a quadratic polynomial model in two variables is then givn and the results interpreted with the objective of decreasing the potential confusion that may arise from a coding situation, e.g., when the independent variables have been coded for convenience in calculation but the final yield function is desired in units of the original variables.Please view the pdf by using the Full Text (PDF) link under 'View' to the left.
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