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Statistics LibreTexts

14.4: Summary

  • Page ID
    7270
  • This chapter has focused on options in designing and using OLS models. We first covered the use of dummy variables to capture the effects of group differences on estimates of YY. We then explained how dummy variables, when interacted with scale variables, can provide estimates of the differences in how the scale variable affects YY across the different subgroups represented by the dummy variable. Finally, we introduced the use of standardized regression coefficients as a means to compare the effects of different XsXs on YY when the scales of the XsXs differ. Overall, these refinements in the use of OLS permit great flexibility in the application of regression models to estimation and hypothesis testing in policy analysis and social science research.