Multiple regression analysis, categorial variables, continuous variable
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Hi, I would like to run a multiple regression where my dependent variable is continuous. One of my independent variable is continuous, and the other independent variable is a category (small cap, midcap, largecap). I am not sure how to construct categorical independent variable. Do I have to use dummyvar function or can I just use 0 and 1 (1 for the category that applies to the observation).
Thank you in advance.
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bym
2012-1-12
as long as you have one category variable, you can use just (0,1).
If , for example you had more than one category (small cap , mid cap, large cap); (public,private);(transportation,conglomerate,medical,etc) you would have to use dummyvar
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