SHAZAM Questions and Answers (Q&A) - RSS feedhttp://community.econometrics.com/questions/SHAZAM Econometrics, Statistics and Analytics Communityen<font color="white">Copyright <b>SHAZAM Analytics, 2018</b></font>Tue, 10 Jan 2012 07:53:26 +0000Logistic regression and modal value.http://community.econometrics.com/question/227/logistic-regression-and-modal-value/Hello users of Shazam,
I use the logit-estimator (logistic regeression). Alle my variables (dependent & independent) are dichotomous. Shazam calculates the marginal probabilities of the variables. The notion "typical case" is important when the marginal probabilities are calculated. According to the Shazam manual - see last version, p. 313:
"An approach is to set values to represent a "typical" case. A "typical case" can be defined by setting all dummy variables to their modal values and all other variables to their mean values".
Question: What is meant by "modal value"? Is it the most frequent value of the random dummy variable?Fri, 06 Jan 2012 06:28:58 +0000http://community.econometrics.com/question/227/logistic-regression-and-modal-value/Comment by Pantera for <p>Hello users of Shazam,</p>
<p>I use the logit-estimator (logistic regeression). Alle my variables (dependent & independent) are dichotomous. Shazam calculates the marginal probabilities of the variables. The notion "typical case" is important when the marginal probabilities are calculated. According to the Shazam manual - see last version, p. 313: </p>
<p>"An approach is to set values to represent a "typical" case. A "typical case" can be defined by setting all dummy variables to their modal values and all other variables to their mean values". </p>
<p>Question: What is meant by "modal value"? Is it the most frequent value of the random dummy variable?</p>
http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?comment=367#post-id-367Ken - thanks for your confirmation. I have two follow up questions to this topic: Let's say we have a sample of N observations and that the dummy variable has the value 1 in 50% of the cases and value 0 in the rest (50%) of the sample. (a) In this case It is not possible to conclude what is the modal value - the most frequent value of the dummy variable? (b) Why not use the average value of the dummy variable? In this particular case the average value would have been 0.5?
Mon, 09 Jan 2012 05:43:45 +0000http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?comment=367#post-id-367Answer by ken for <p>Hello users of Shazam,</p>
<p>I use the logit-estimator (logistic regeression). Alle my variables (dependent & independent) are dichotomous. Shazam calculates the marginal probabilities of the variables. The notion "typical case" is important when the marginal probabilities are calculated. According to the Shazam manual - see last version, p. 313: </p>
<p>"An approach is to set values to represent a "typical" case. A "typical case" can be defined by setting all dummy variables to their modal values and all other variables to their mean values". </p>
<p>Question: What is meant by "modal value"? Is it the most frequent value of the random dummy variable?</p>
http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?answer=318#post-id-318Yes, modal is the most frequent valueSun, 08 Jan 2012 15:29:01 +0000http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?answer=318#post-id-318Answer by ken for <p>Hello users of Shazam,</p>
<p>I use the logit-estimator (logistic regeression). Alle my variables (dependent & independent) are dichotomous. Shazam calculates the marginal probabilities of the variables. The notion "typical case" is important when the marginal probabilities are calculated. According to the Shazam manual - see last version, p. 313: </p>
<p>"An approach is to set values to represent a "typical" case. A "typical case" can be defined by setting all dummy variables to their modal values and all other variables to their mean values". </p>
<p>Question: What is meant by "modal value"? Is it the most frequent value of the random dummy variable?</p>
http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?answer=319#post-id-319In this case there is no 'typical case' you have two possibilities
so just do it twice to show the two typical cases.
Dummy variables should always be 0 or 1 not .5
Mon, 09 Jan 2012 17:52:50 +0000http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?answer=319#post-id-319Comment by Pantera for <p>In this case there is no 'typical case' you have two possibilities
so just do it twice to show the two typical cases.
Dummy variables should always be 0 or 1 not .5</p>
http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?comment=366#post-id-366Thanks Ken!Tue, 10 Jan 2012 07:53:26 +0000http://community.econometrics.com/question/227/logistic-regression-and-modal-value/?comment=366#post-id-366