In a study of employees at a local company,the human resource manager wants to develop a multiple regression model to explain the difference in employee wage rates.She is thinking of including a variable,degree status,in which the following categories exist: no degree,H.S.degree,junior college degree,bachelor degree,graduate degree.One appropriate approach for including this variable is to code the categories 1,2,3,4,and 5.

Question

Quizplus · Accepted Answer

Using numerical codes for categorical variables in regression can imply an ordinal relationship, which may not be appropriate. Instead, dummy variables should be used to represent each category.

In a Study of Employees at a Local Company,the Human