Estimating Models Using Dummy Variables

Estimating Models Using Dummy Variables

Using and interpreting categorical variables takes just a little bit of extra practice. In this Discussion, you will have the opportunity to practice how to recode categorical variables so they can be used in a regression model and how to properly interpret the coefficients. Additionally, you will gain some practice in running diagnostics and identifying any potential problems with the model.

To prepare for this Discussion:

Review the learning resources attached and consider the use of dummy variables.

Create a research question using the General Social Survey dataset that can be answered by multiple regression. Using the SPSS software, choose a categorical variable to dummy code as one of your predictor variables.

Estimate a multiple regression model that answers your research question. Post your response via a word document to the following:

What is your research question?

Interpret the coefficients for the model, specifically commenting on the dummy variable.

Run diagnostics for the regression model. Does the model meet all of the assumptions? Be sure and comment on what assumptions were not met and the possible implications. Is there any possible remedy for one the assumption violations?

Follow the attached guidelines for assistance when completing the assignment.

Be sure to use proper APA format, citations, and referencing.