![]() If you'd like to see some additional examples of how dummy coding works, this website has some excellent examples and explanations. So, with the dummy coding, a black student is expected to have a mean weight of $40$ bounds, a white student a mean weight of $38$ bounds, and an Asian student a mean weight of only $35$ pounds.Īs you can see dummy coding allow the regression model to change depending on the categories you are trying to predict. Y_=0$, we are representing the Asian racial category. ![]() For example, if we wanted to predict, say, weights of children in a school as a linear function of age, we could specify the following model: In regression analysis without categorical variables, it's straight forward to include numeric predictors in a regression model.
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