The data now can be expressed as in the table on the left of Figure 4.įigure 4 – Alternative coding for data in Example 1 In general, If there are k groups then the jth dummy variable t j = 1 if the jth group, t k = -1 if the kth group and = 0 otherwise. T 2 = 1 if flavoring 2 is used = -1 if flavoring 3 is used = 0 otherwise T 1 = 1 if flavoring 1 is used = -1 if flavoring 3 is used = 0 otherwise This is consistent with what we noted above when relating the population group means to the population coefficients, namely µ 3 = β 0, µ 1 = β 0 + β 1 and µ 2 = β 0 + β 2.Įxample 1 ( alternative approach): An alternative coding for Example 1 is as follows
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