Greetings: I am a newbie ESRI-GIS user and I am trying to employ geographically weighted regression (GWR) to help with creating models (hedonic price model) for house prices. One of the problems is that I often need a dummy/binary variable to describe an event which effects the house price. As an example I have a dataset where there is a dummy variable to indicate whether the sale was a distress sale or not (unfortunately an all too often occurrence today). It has a relatively large effect on a home price. How could/would I incorporate such a variable into any analysis ?
Thanks for any help and suggestions.
