topic Transforming dummy variables to get rid of model bias in OLS in Spatial Statistics Questions https://community.esri.com/t5/spatial-statistics-questions/transforming-dummy-variables-to-get-rid-of-model/m-p/730183#M2304 <HTML><HEAD></HEAD><BODY><SPAN>Hi there forum! I have a question about the use of dummy variables in OLS and GWR. My model(s) pass all the tests for a properly specified model, EXCEPT the Jarque-Bera test, which indicates model bias. I am using several dummy variables, which clearly are NOT normally distributed. Could this be the problem? If so, would log or exponential (or other) transformation rectify this problem?</SPAN><BR /><BR /><SPAN>I am very certain that there is non-stationarity in the relationships between my dependent and explanatory variables. Is there any chance that this could be causing the model bias, or is it likely to be non-linear relationships, meaning I need to transform my explanatory variables?</SPAN><BR /><BR /><SPAN>Thanks in anticipation!</SPAN><BR /><SPAN>Angela</SPAN></BODY></HTML> Tue, 24 Dec 2013 04:29:32 GMT angelagaylard 2013-12-24T04:29:32Z Transforming dummy variables to get rid of model bias in OLS https://community.esri.com/t5/spatial-statistics-questions/transforming-dummy-variables-to-get-rid-of-model/m-p/730183#M2304 <HTML><HEAD></HEAD><BODY><SPAN>Hi there forum! I have a question about the use of dummy variables in OLS and GWR. My model(s) pass all the tests for a properly specified model, EXCEPT the Jarque-Bera test, which indicates model bias. I am using several dummy variables, which clearly are NOT normally distributed. Could this be the problem? If so, would log or exponential (or other) transformation rectify this problem?</SPAN><BR /><BR /><SPAN>I am very certain that there is non-stationarity in the relationships between my dependent and explanatory variables. Is there any chance that this could be causing the model bias, or is it likely to be non-linear relationships, meaning I need to transform my explanatory variables?</SPAN><BR /><BR /><SPAN>Thanks in anticipation!</SPAN><BR /><SPAN>Angela</SPAN></BODY></HTML> Tue, 24 Dec 2013 04:29:32 GMT https://community.esri.com/t5/spatial-statistics-questions/transforming-dummy-variables-to-get-rid-of-model/m-p/730183#M2304 angelagaylard 2013-12-24T04:29:32Z