W for weights, D for binary dummy variables
ITINERARY CONNECTIVITY (ns=nonstop, 1s=connection, 2s=doubleconnection)
AIRCRAFT TYPE (wb=widebody, nb=narrowbody, rj=regionaljet, tp=turboprop)
For each record, the there is one AIRCRAFTTYPE dummy variable with a value of 1; all others 0.
For each record, the there is one ITINERARY dummy variable with a value of 1; all others 0.
So basically the model is ShareIndex=W(aircrafttype)*W(itinerarytype)
The dependent variable in the actual data is SHARE (market share). However, the model might produce a ShareIndex where each record's SHAREINDEX / (sum SHAREINDEXES all records that market)=market share
For example if a market has 10 records each with 10% market share. MS(record1)=W(AircraftType)*W(ItineraryType)/
Re: Math Help: How to Calculate Weights for Multiplicative Model with Dummy Variable
Here is some more info...
Looking for to calculate the weights/coefficients. Not sure how to regress this model. (This model is more complex than any I have worked with due to multiplicative function AND use of ShareIndex while the data only includes Market share.)