Chapter 8

Qualitative Variables in Regression

Qualitative Data

There are numerous types of data, each with its own characteristics and nature. Qualitative data are information about characteristics of a population of interest that cannot be measured numerically. For example, gender of workers is important in wage-earning differentials or comparisons of educational attainment of unemployed people. However, gender cannot be represented numerically; at least not in the same way as quantitative variables. Other qualitative characteristics are race, eye color, city or state of residence, type of car one drives, kinds of food one purchases, and numerous other characteristics that cannot be presented meaningfully with numbers. Qualitative variables ...

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