Re: Dummy Coding Variables

Posted by Bruce Weaver on Apr 19, 2013; 1:13pm
URL: http://spssx-discussion.165.s1.nabble.com/Dummy-Coding-Variables-tp5719548p5719559.html

So is Manufacturer the variable with 25 (or 26) levels?  What people have been hinting at is that this is FAR too many levels for you to get anything useful out of your model.  (I also suspect you don't have nearly enough cases in your data set to support a model with that many categories for manufacturer.)  You might consider looking at North American / European /Asian instead.

Finally, it also sounds like you need to do a fair bit of background reading, as another poster suggested.

@ David:  I'll take a splash of milk & no sugar please.  ;-)

JJEcon wrote

The DV is vehicle registrations for 2011. The IVs include price, manufacturer as a proxy for brand loyalty (this is the variable I thought needed coding), body type, customer reviews, fuel capacity, fuel type etc.

So have I essentially gone at this in entirely the wrong way? (I'm an undergrad in Business Economics with only one statistics module under my belt- studied two years ago, so I'm far from comfortable with even the most simple SPSS processes).

Any guidance would be helpful (please don't say I have to scrap the entire thing :( )