In OLS, the coefficient on a dummy variable simply reflects the mean
difference in the dependent variable between cases where the dummy is 0 vs.
1. Therefore, just like the overall mean of the residuals from OLS is 0,
the mean residuals will also be zero for any group defined by an included
dummy variable.
Michael Blasnik
[email protected]
----- Original Message -----
From: "Puneet K Singhal" <[email protected]>
To: <[email protected]>
Sent: Friday, March 19, 2004 1:47 PM
Subject: st: A regression question.
> I have expenditures post-stroke at one month intervals and want to predict
> these expenditures by number of months post stroke controlling for other
> covariates. For this purpose, I am using dummy variables for the number
of
> months post stroke. For example, if I have 12 months of follow-up I'm
using
> 11 dummies for each month up to 11 months and keeping 12th month as my ref
> category. Now, after fitting this OLS I want to take the mean of
predicted
> values for each month and compare the predicted values across months.
When I
> do that what I find is that the mean predicted values are the same as the
> mean observed values for each month. I just can't conceptualize why they
are
> the same. When I stratify the predicted values by gender, I again get the
> same values as I would if I stratified the observed values by gender.
>
> Can someone help?
>
>
> ----------------------------------------------------
> Puneet K Singhal, M.S.
> Doctoral Candidate
> Pharmaceutical Health Services Research Program
> University of Maryland
> Baltimore, MD-21201
> Phone: 410-706-1805
> Fax: 410-706-1488
> ----------------------------------------------------
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