Is it possible to set flag variable to extra features?

[satomi999]

Dear Team :)
Is it possible to add a flag variable for event status (1: event date, 0: not event date) to extra_features?
We know that event increase sales and we want to include event effect when decomposition effects in MMM.

[pabloduque0]

Hello @satomi999 !!

Yess! that is definitely a perfect way to add extra_features into the model, binary ones are valid as you mentioned.

Hope it helps!

[satomi999]

@pabloduque0
Thanks for your prompt reply!
Sorry, just one more question.
Regarding multicollinearity, Robyn uses ridge regression to avoid multicollinearity.
Does LightweightMMM also avoid multicollinearity among variables?

[pabloduque0]

Yes, Bayesian methods can be more robust to multi collinearity than ridge regression. You can read more about it on this paper.