Transcription of Working with categorical data and factor variables
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Example: tourism industry
Working with categorical data and factor variables
25 Working with categorical data and factor , categorical , and indicator continuous variables to indicator continuous variables to categorical with factor factor base base levels significance of a main indicator (dummy) variables as factor significance of factorial squared terms and Including interactions with continuous Parentheses Including indicators for single Including subgroups of Combining factor variables and time-series Treatment of empty Continuous, categorical , and indicator variablesAlthough to Stata a variable is a variable, it is helpful to distinguish among three conceptual types: Acontinuous variablemeasures something. Such a variable might measure a person s age, height,or weight; a city s population or land area; or a company s revenues or costs.
We can use the same logic on any categorical variable that divides the data into two groups. It is a categorical variable because it identifies whether an observation is a member of this or that group; it is an indicator variable because it denotes the truth value of the statement “the observation is in this group”.
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