Categorical Simple Regression Model. When the response variable is binary or categorical a standard linear regression model cant be used but we can use logistic regression models instead. In this lesson we investigate the use of such indicator variables for coding qualitative or categorical predictors in multiple linear regression more extensively.
Weve learned that variables with just two categories are called binary variables and are simple to use in regression. But what are the two possible values of X. In theory the solution is simple.
If using the regression command you would create k-1 new variables where k is the number of levels of the categorical variable and use these new variables as predictors in your regression model.
But what are the two possible values of X. Continuous variable and 2-level categorical variable 2. In this chapter we will focus on a regression model that has two categorical predictor variables and their interaction terms. Quick Review Of Linear Regression Models What are Categorical Variables.
