Re: Dummy Coding Variables

Posted by David Marso on Apr 19, 2013; 10:52am
URL: http://spssx-discussion.165.s1.nabble.com/Dummy-Coding-Variables-tp5719548p5719554.html

Well the 25? 26? level NOMINAL variable has absolutely no business being in the REGRESSION in the first place (so, I will assume you will draw your own conclusions).  You would do yourself a favor by researching the relationship between REGRESSION and ANOVA from a linear models perspective and also write out the regression equation to acquire some sort of epiphany re the meaning/interpretation of the dummy variables.

JJEcon wrote

Thanks for your help, Bruce.

As I've already coded the variables (and written about the process), I think I'm going to keep them as they are and use the standard regression function.

Am I correct in thinking that these 25 dummy variables then replace the 1 categorical variable in the model and I can now go ahead and run the regression? (Sorry- may be a very obvious question)

Thanks again! :)