Dummy Variable Trap in Regression

Assume we have variable of sex: female and male. If in the analysis we use two dummy variable, let’s say female is represented by f and male represented by m, there will be a problem of multicollinearity (one value can be predicted from the other values). This is caused by the fact that the the row of f and m in the matrix is highly correlated: The i-th row in the f is correlated with the i-th row in the m. For example: if i-th row in f is 0, so the i-th is 1, vice versa. Thus, the determinant will be 0.

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