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Hi, I didn't understand why the values in the model were zero for West and South (13:10). Could you explain better? If your explanation is, because West and South is not the reference category, then I ask: on which occasion do I multiply by 1 instead of zero? because the model summary never shows the reference category, it only shows the non-reference categories. So the multiplication will always be zero, it doesn't make sense.
Analise, If you have a row that indicates a West neighborhood, then you multiply the coefficient of NbhWest which is 2.09040 with 1 and use it on the right hand side of the equation. In this case, you will have to use 0 for NbhSouth. Similarly, if the entry is in the South neighborhood, you have to multiply its coefficient (0.86391) with 1 and 2.09040 with 0. So, the multiplications will only be zero for these two terms if the datapoint falls into the neighborhoods other than these two. Hope this helps.
Hi, I didn't understand why the values in the model were zero for West and South (13:10). Could you explain better? If your explanation is, because West and South is not the reference category, then I ask: on which occasion do I multiply by 1 instead of zero? because the model summary never shows the reference category, it only shows the non-reference categories. So the multiplication will always be zero, it doesn't make sense.
Analise, If you have a row that indicates a West neighborhood, then you multiply the coefficient of NbhWest which is 2.09040 with 1 and use it on the right hand side of the equation. In this case, you will have to use 0 for NbhSouth. Similarly, if the entry is in the South neighborhood, you have to multiply its coefficient (0.86391) with 1 and 2.09040 with 0. So, the multiplications will only be zero for these two terms if the datapoint falls into the neighborhoods other than these two. Hope this helps.