Abstract
In Chaps. 2 and 3, we have focused on regression analyses using continuous variables. In regression analysis, the dependent variables may be influenced not only by quantitative variables, but also by qualitative variables. We need to incorporate categorical variables or, qualitative variables in a linear regression model. Examples of qualitative variables include gender, religion, geographic region, race, political affiliation, or marital status. A dummy variable which is binary in nature is used to represent qualitative information in a linear regression model. This chapter explains how qualitative explanatory variables can be incorporated into a linear model.
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