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We drop the constant from the regression. We leave the constant as it is, that is, we do not standardize it That is, if one of the regressors is constant and equal to 1.Ĭlearly, the constant cannot be standardized because it has zero variance and Particular care needs to be taken if the regression includes an intercept, If it does not have zero mean and unit variance. The same process is performed on the dependent variable Then, we compute the standardized variable We compute the sample mean and variance of Indicates that the variable is unstandardized). In general, a variable to be included in a regression model has not zero mean Standardized: How to obtain standardized variables Standard deviation or, equivalently, unitįurthermore, we assume that also the dependent variable is In a standardized regression all the variables have zero mean and unit Comparisons among standardized coefficientsĪre the observations in the sample, there are