How can you evaluate whether the slope of the dependent variable with an independent variable is the same for each level of the dummy variable?

Question

Engineering

Obrien

7 February, 03:33

How can you evaluate whether the slope of the dependent variable with an independent variable is the same for each level of the dummy variable?

+5

Answers (1)

Know the Answer?

Ferris · Answer 1

By running multiple regression with dummy variables

Explanation:

A dummy variable is a variable that takes on the value 1 or 0. Dummy variables are also called binary

variables. Multiple regression expresses a dependent, or response, variable as a linear

function of two or more independent variables. The slope is the change in the response variable. Therefore, we have to run a multiple regression analysis when the variables are measured in the same measurement. The number of dummy variables you will need to capture a categorical variable

will be one less than the number of categories. When there is no obvious order to the categories or when there are three or more categories and differences between them are not all assumed to be equal, such variables need to be coded as dummy variables for inclusion into a regression model.