| | Glossary of research economics |
 | | This decomposition is used to structure an F test to test the hypothesis that the between-class variation is large relative to the within-class variation, which implies that the classification is meaningful, i.e., that there is a significant variation in the dependent variable between classes. |
 | | The main advantage of the dummy variable regression is that it provides estimates of he magnitudes of class variation influences on the dependent variables (as well as testing whether or not the classification is meaningful). |
 | | That is, those other variables determine the variable in question unerringly, by a function that would give the same value every time those other variables were given to it as arguments, unlike a random one which with some probability would give different answers. |
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