Categorical Dependent Variable. This is quite common in insurance an example is to model possible claiming outcomes as ordered categorical responses. Among the de nitions for contingent.
Nominal variables are variables that have two or more categories but which do not have an intrinsic order. A categorical variable has values that you can put into a countable number of distinct groups based on a characteristic. Which increases the predictive power and builds the monotonic relationship between the encoded dependent variable with the target variable.
What is the nature of your independent variables the variables you are using to predict your dependent variable.
A categorical variable values are just names that indicate no ordering. In ordinal categorical dependent variable models the responses have a natural ordering. Feb 10 2015 Therefore my dependent variable is labour productivity. Select this option if your independent variables are all continuous.
