The dummy variables approach

A certain variable selection can be represented by a binary vector dk  

Therefore, the GOLPE process is iterative where uncertain and fixed variables are kept in the next step. The variables in step 3 above are removed. 

The dummy variable method used here is not iterative and only indicates the variables found to have positive effects for the prediction ability. 

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The actual testing of race as a co variate is done using dummy variables. For instance, suppose subjects in a study were either White (coded as 0 ) or Black (coded as 1 ) and clearance (CF) was being modeled. Then using the dummy variable approach with a proportional change model, the effect of race on CL could be modeled as... 

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