Dear all,
I have just run a HB estimation with different categorical variables as covariates. I am just wondering whether the output already indicates the difference to the base case or whether I need to calculate those differences.
As an example: we have asked customers if they are willing to pay little, medium or a lot. Running this as covariate will give an intercept (=willing to pay little) and two values for 'medium' and 'a lot'. Can I take these two values as absolute additions to the intercept in case their category is met?
Thank you & best,
Max