hi all
how does stata handle multiple dummy variables (if i do an ordered
logit model, for exemple)?
I have a categorical independent variable with let's say 4 possible
outcomes: A,B,C,D. If i recode this variable into 4 dummies and incorporate
all these 4 into a regression as 4 independent variables then of
course stata will automatically drop a category (A,B,C or D) due
to collinearity. My question now is, on which criteria does stata
automatically drop this category or is the dropped variable chosed
randomly by stata?
thanks and regards claude
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