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I'm doing a research about the relationship between investment risk tolerance and demographic factors such as age, generation, survey year, and control variables (including education levels,...) and I have 2 questions:

  1. I have already categorized respondents into 5 different groups ( loweduc, training, university, college, othereduc) but I'm not sure which one to take as the reference category.
  2. The data collected is from 1993 to 2019 and I'm doing the test to see if survey years affect their risk tolerance by adding event years and periods in the regression. For example, I want to see if 2001 and 2008 crisis affect their responses, and how they reacted in the next 4-year period. So I included 01, 08, 02-05, 09-12 to my model but I have no idea what is the reference category to interpret those dummies.
kjetil b halvorsen
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Long Duong
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    Nice you joined this forum. Can you make more clear what kind of risk you want to predict? As that for example risk of becoming unemployed ? When you can specify risk-full events, then your reference outcomes should naturally follow. – Match Maker EE Aug 04 '20 at 10:45
  • Thank you for your reply, I just edited the dependent varibale, which is investment risk tolerance – Long Duong Aug 04 '20 at 10:49
  • https://stats.stackexchange.com/questions/208329/reference-level-in-glm-regression/397840#397840 and https://stats.stackexchange.com/questions/430770/in-a-multilevel-linear-regression-how-does-the-reference-level-affect-other-lev – kjetil b halvorsen Aug 04 '20 at 19:17
  • Does this answer your question? [Reference level in GLM regression](https://stats.stackexchange.com/questions/208329/reference-level-in-glm-regression) – kjetil b halvorsen Aug 27 '20 at 03:05

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