In this chapter, we explain how to introduce categorical variables in a regression analysis, coding the categories with dummy variables. This is needed in most of the applications of regression analysis, since the samples on which we collect our data are typically partitioned into groups. In the example, we use a dummy variable to code gender, which allows us to include the comparison between genders in the analysis in an easy way.
CITATION STYLE
Canela, M. Á., Alegre, I., & Ibarra, A. (2019). Dummy Variables. In Quantitative Methods for Management (pp. 57–63). Springer International Publishing. https://doi.org/10.1007/978-3-030-17554-2_6
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