If you wish to develop a multiple regression model that includes a qualitative variable; education status, in which the following categories exist: no degree, high school diploma, junior college degree, bachelor degree, and graduate degree, you need to code the categories as 1, 2, 3, 4, and 5.
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Q. 2Three qualitative variables need to be incorporated into a regression model. The first variable has 5 possible categories, the second one has 3 possible categories, and the third one has 2 possible categories. Based on this information, ten dummy variables need to be included in the regression model.
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Q. 3In order to incorporate the marital status variable into a multiple regression model, there are four possible categories for this variable: married, single, divorced, or widow. Based on this information, four indictor variables will need to be created (one for each category) and incorporated into the regression model.
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Q. 4In order to incorporate qualitative variables into a regression model, one or more dummy variables are needed.
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Q. 5A dummy or indicator variable is a dependent variable whose values are either 0.0 or 1.0.
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Q. 6Stepwise regression analysis is a procedure that is implemented by computer and is available in most statistical packages. It is mainly used to determine which of a large number of independent variables should be included in the model.
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