Transcription of MULTIPLE REGRESSION WITH CATEGORICAL DATA
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MULTIPLE REGRESSION WITH CATEGORICAL DATA
ISexMerit PayiSexMerit OF POLITICAL SCIENCEANDINTERNATIONAL RELATIONSPosc/Uapp 816 MULTIPLE REGRESSION WITH CATEGORICAL DATA REGRESSION with CATEGORICAL : Agresti and Finlay Statistical Methods in the Social Sciences, 3rdedition, Chapter 12, pages 449 to INDEPENDENT : what does sex discrimination in employment mean and how can it bemeasured? answer these questions consider these artificial data pertaining to employmentrecords of a sample of employees of Ace : here the dependent variable, Y, is merit pay increase measured in percentand the "independent" variable is sex which is quite obviously a nominal orcategorical goal is to use CATEGORICAL variables to explain variation in Y, a quantitativedependent need to convert the CATEGORICAL variable gender into a fo
i. The expected merit pay increase for males is thus β0 + β1. 3. Now consider the model for females, i.e., X = 0. Again, make the substitution and reduce the equation. i. We can see from these equations that β0 is the expected value of Y (remember it's merit pay increase in this example) for those subjects
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