Hi everyone,
I have a negative path coefficient between LV and DV , where the LV is likelihood to start a business and DV is categorical variable which is the type of business, so the path coefficient must be positive but I got a coefficient of -.359 and p-value of .085 (>.05).
1-How is that possible ? and how can justify it in my thesis?
2- Can SmartPLS deal with final categorical DV (after dummy-codeding it) ? am confused because i've read in the forum some who says it can it limitation and some says it cant
Negative path coefficient when it should be positve
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- SmartPLS Developer
- Posts: 1282
- Joined: Tue Mar 28, 2006 11:09 am
- Real name and title: Dr. Jan-Michael Becker
Re: Negative path coefficient when it should be positve
First, categorical variables do not work well as a DV in PLS as it assumes metric variables like in a regression. Hence, it uses your 1,2,3 (or whatever categories you have) as a 1,2,3 in a metric sense. That could already explain the strange result.
Moreover, if a coefficient is not significant (from zero) it is somewhat meaningless to talk about its sign as it is likely that it could be a null effect.
Moreover, if a coefficient is not significant (from zero) it is somewhat meaningless to talk about its sign as it is likely that it could be a null effect.
Dr. Jan-Michael Becker, BI Norwegian Business School, SmartPLS Developer
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de
Researchgate: https://www.researchgate.net/profile/Jan_Michael_Becker
GoogleScholar: http://scholar.google.de/citations?user ... AAAJ&hl=de