Doubt related Bi serial correlation

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Rachit soni

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Nov 20, 2020, 1:19:28 AM11/20/20

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when we code the variables as 0 or 1 we do we need to follow a pattern for coding like the variable with more appearance be coded 0 because how we lable the coefficient will affect the sign of the final answer.

Pranav Dave

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Nov 20, 2020, 1:58:12 AM11/20/20

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I am no expert but here's what I think,

The final sign says the direction of the correlation. if y1-y0 <0 this means there is a correlation favouring Y0 and vice versa.

Statistics 1 Support 1

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Nov 20, 2020, 2:38:47 AM11/20/20

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Hi,

Bi serial coefficient gives you only strength, not the directions. So, if you are shuffling the coding value will come the same but with a different sign.

Thanks,

Nitin Jha

Course support team

Rachit soni

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Nov 20, 2020, 3:06:42 AM11/20/20

to Statistics 1 Support 1, Discussion forum for Statistics for Data Science I, Pranav Dave