Direct and Indirect Effects in Dummy Variable Regression
American Journal of Theoretical and Applied Statistics
Volume 3, Issue 2, March 2014, Pages: 44-48
Received: Dec. 3, 2013; Published: Feb. 20, 2014
Views 2670      Downloads 156
Authors
Oyeka I. C. A., Department of Statistics, Nnamdi Azikiwe University, Awka, Nigeria
Nwankwo Chike H., Department of Statistics, Nnamdi Azikiwe University, Awka, Nigeria
Article Tools
PDF
Follow on us
Abstract
This paper proposes and develops the use of the non-cummulative dummy variables of 1’s and 0’s to represent levels of parent independent variables in dummy variable multiple regression models. The regression coefficients obtained using the proposed methods are easier to interprete and clearly understand than the use of the cummulatively coded ordinal dummy variables of 1’s and 0’s that could be used for the same purpose. The proposed method also enables the simultaneous estimation of the total, absolute or overall effect of a parent independent variable as well as its direct effect through its representative dummies and its indirect effect on a given independent variable through the mediation of other parent independent variables in the model was demonstrated. The use of these procedures was illustrated with an example.
Keywords
Dummy Variables, Total Effect, Direct Effect, Indirect Effect, Parent Variables, Mediation Model
To cite this article
Oyeka I. C. A., Nwankwo Chike H., Direct and Indirect Effects in Dummy Variable Regression, American Journal of Theoretical and Applied Statistics. Vol. 3, No. 2, 2014, pp. 44-48. doi: 10.11648/j.ajtas.20140302.13
References
[1]
Oyeka I. C. A. and Nwankwo, C. H. (2012): "Use of Ordinal Dummy Variables in Regression Models". IOSR Journal of Mathematics, Vol. 2, Issue 5 (Sep – Oct 2012), pp 10 – 07.
[2]
Boyle, R. P. (1970): "Path Analysis and Ordinal Data". American Journal of Sociology, 47, 1970, 461 – 480.
[3]
Oyeka I. C. A. (1993): "Estimating Effects in Ordinal Dummy Variable Regression". STATISTICA, anno L.111, n.2 pp 262 – 268.
[4]
Neter, J., Wasserman, W. and Kutner, M. H. (1983): "Applied Linear Regression Models". Richard D. Irwin Inc, Illinois.
[5]
Wright, S. (1960): "Path Coefficients and Path Regression: Alternative to Complementary Concepts". Biometrics, Volume 16, pp 189 – 202.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186