If you wish to develop a multiple regression model that includes a qualitative variable, for example, education status, in which the following categories exist: no degree, high school diploma, college degree, bachelor degree, and graduate degree, you need to code the categories as 1, 2, 3, 4, and 5.

Question

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Qualitative variables should be coded using dummy variables, not as ordinal numbers, to avoid implying a numerical relationship or order that doesn't exist.

If You Wish to Develop a Multiple Regression Model That