
Chapter 15
PB
Multiple Regression Analysis
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want to include one more variable “display arrangement of products” in retail stores as another
variable to predict sales. In most cases, researchers collect demographic information such as
gender, educational background, marital status, religion, etc. In order to include these in the mul-
tiple regression model, a researcher has to use indicator or dummy variable techniques. Inother
words, the use of the dummy variable gives a rm grounding to researchers for including cate-
gorical variables in the multiple regression model.
Researchers usually assign 0 or 1 to code dummy variables in their study ...