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Subject Name: Data Management for Analytics Software used: SAS Q2. Which of the following statements are...

Subject Name: Data Management for Analytics
Software used: SAS

Q2. Which of the following statements are true regarding dummy coding?

a. Dummy coding high cardinality inputs can lead to overfitting a predictive model.
b. The reference level should always be the second level of the categorical variable after sorting in ascending order.
c. In SAS, dummy variables can only be created with following code: if var1="X" then var1_x_dum = 1; else var1_x_dum = 0;
d. Dummy coding is also known as “Cold Encoding”
e. None of the above.

Math   Statistics-And-Probability   
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