Categorical Variables In Regression Stata. Analysis with 2 categorical variables. Chapter 3 - Regression with Categorical Predictors.
Stata handles factor categorical variables elegantly. You can put a between two variables to create an interactionindicators for each combination of the categories of the variables. Chapter 3 - Regression with Categorical Predictors.
The variable _Icred_2 is 1 if cred is equal to 2 and zero otherwise.
Stata will create the k-1 dummies on the fly if you use factor variables by specifying ivarname in your regression. I agree with German provided your categorical variable is. Lets use the variable yr_rnd as an example of a dummy variable. In this video we discussed how to do regression analysis linear regression in STATA and how to interoperate the results.
