So I am working on the project - Predicting car prices.
I want to understand how do I find statistical significance between a categorical independent variable and a dependent continuous variable. Basically I want to find whether a categorical variable affects the price of the vehicle.
Any test I can perform?
These may help you with it:
In statistics, one-way analysis of variance (abbreviated one-way ANOVA) is a technique that can be used to compare means of two or more samples (using the F distribution). This technique can be used only for numerical response data, the "Y", usually one variable, and numerical or (usually) categorical input data, the "X", always one variable, hence "one-way".
The ANOVA tests the null hypothesis, which states that samples in all groups are drawn from populations with the same mean values. To do ...
Analysis of covariance (ANCOVA) is a general linear model which blends ANOVA and regression. ANCOVA evaluates whether the means of a dependent variable (DV) are equal across levels of a categorical independent variable (IV) often called a treatment, while statistically controlling for the effects of other continuous variables that are not of primary interest, known as covariates (CV) or nuisance variables. Mathematically, ANCOVA decomposes the variance in the DV into variance explained by the CV(...
We don’t teach it in our paths as of now.
Thank you so much!
This is exactly what i was looking for.