Creating a dummy using experience parameter

I have a large dataset consisiting of several financial deals, with a variable of investors in the deal. I have counted the occurance of every investor, and want to create a dummy variable in each deal depening on they have experience or not. Experienced being deemed as above mean. The dataset is quite large, so will need a loop of some kind i think. Added a picture for visualization of investor representation

Answer 1

[Gowtham]

Hello Ruben,

I understand that you want to create a dummyvar given the conditions on experience in the given data.

Considering the data is provided with the columns ‘names’, ‘count’, ‘mean’ and ‘observations_above_mean’ in a ‘table’ format, we can use logical indexing instead of loops to perform the task.

For a sample demonstration of the above process, kindly refer to the following code snippet:

% Create a sample table data
names = {'Investor A'; 'Investor B'; 'Investor C'; 'Investor D'; 'Investor E'};
count = [8; 10; 4; 6; 12];
mean = [7; 7; 7; 7; 7];
observations_above_mean = [1; 3; 0; 2; 5];

% Create the table
data = table(names, count, mean, observations_above_mean);

% Set the threshold for observations above mean
threshold = 2; % Adjust the threshold value as needed

% Create a logical vector indicating whether each investor has experience or not
experience = data.observations_above_mean > threshold;

% Convert the logical vector to a categorical variable
experience_category = categorical(experience, [0 1], {'No', 'Yes'});

% Use the dummyvar function to create dummy variables based on the categorical variable
dummy_variables = dummyvar(experience_category);

% Concatenate the original table with the dummy variables
data_with_dummies = [data array2table(dummy_variables)];

% Rename the target columns
data_with_dummies = renamevars(data_with_dummies, ["dummy_variables1", "dummy_variables2"], ["not_experienced", "experienced"]);

% Display the resulting table
data_with_dummies

data_with_dummies = 5×6 table
        names         count    mean    observations_above_mean    not_experienced    experienced
    ______________    _____    ____    _______________________    _______________    ___________

    {'Investor A'}      8       7                 1                      1                0     
    {'Investor B'}     10       7                 3                      0                1     
    {'Investor C'}      4       7                 0                      1                0     
    {'Investor D'}      6       7                 2                      1                0     
    {'Investor E'}     12       7                 5                      0                1     

The provided output is the result of running the code snippet, which includes the columns labelled as not_experienced and experienced.

Kindly refer to the following MATLAB documentation for further understanding on dummyvar and categorical functions

• https://www.mathworks.com/help/stats/dummyvar.html
• https://www.mathworks.com/help/matlab/ref/categorical.html

Hope this helps.

Best Regards,

Gowtham