I have a dataset for 39 local authorities. Each local authority hosts at minimum one professional sports franchise. 35 out of the 39 host only one professional franchise, 3 out of the 39 local authorities host 2 professional sports franchise, and 1 of the 39 local authorities hosts 3 professional sports teams. Is there any way I can introduce binary variables to capture this, without introducing perfect multicollinearity?

I have a dataset for 39 local authorities. Each local authority hosts at minimum one professional sports franchise. 35 out of the 39 host only one professional franchise, 3 out of the 39 local authorities host 2 professional sports franchise, and 1 of the 39 local authorities hosts 3 professional sports teams. Is there any way I can introduce binary variables to capture this, without introducing perfect multicollinearity?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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regression, econometrics
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E3
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