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Problem with Dummy Varaibles

Question asked by mykotti on Apr 7, 2017
Latest reply on Apr 7, 2017 by mykotti

Hello,

I have categorical variable named "ethnicity" with values Black and Latinos. I wanted to create  dummy variable  for each value. First, I created dummy variable for black in a new column and gave it the value of "1", and Latinos the value of "0".

Then I created another dummy variable for Latinos in a new column and gave it the value of "1", and black the value of "0".

So when I ran the Ordinary least square (Ordinary Least Squares (OLS)—Help | ArcGIS Desktop ) on these two dummy variables, I got the error of multicollinearity, it regarded the two variable redundant. Is there any way I can create the two dummy variables without having this error?? (I wanted to create them in Arcmap using field calculator)

Appreciate.

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