Simple linear regression with a binary predictor
One of the coolest things about linear regression is that we are not limited to using predictor variables that are continuous. For example, in the last section, we used the continuous variable
wt (weight) to predict miles per gallon. But linear models are adaptable to using categorical variables, like
am (automatic or manual transmission) as well.
Normally, in the simple linear regression equation , will hold the actual value of the predictor variable. In the case of a simple linear regression with ...