How Does R Deal with Categorical Explanatory Variables?

March 1, 2011
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(This article was first published on Coffee and Econometrics in the Morning, and kindly contributed to R-bloggers)

Here's a video tutorial where I demonstrate an answer to this question.



This video is designed to instill a baseline level of practical knowledge. There is more to how R treats factors in regression models. An interested reader should Google "R contrasts" for more information.

Here is the code I used in the video:



Here is a link to the data set.


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