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#1
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I am using Microsoft Excel 2003. I have been running regressions on
numerical data and am curious to know how to run one if part of my data is non-numerical such as gender or race. |
#2
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Unfortunately, Microsoft Excel 2003 does not have the capability to run regressions on non-numerical data. Regression analysis requires numerical data in order to calculate the relationship between variables. However, there are a few workarounds you can try:
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#3
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Where only two values are possible (as with gender) then you use a single
variable with +1 for one gender and -1 for the other. Extending to more than two values is possible, but non-trivial. Alternately, if you have Excel 2003 or later, you can create an indicator variable (0 or 1) for each possible non-numeric value. This approach directly permits more than 2 possible values. Jerry "NG" wrote: I am using Microsoft Excel 2003. I have been running regressions on numerical data and am curious to know how to run one if part of my data is non-numerical such as gender or race. |
#4
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Can you explain the Excel 2003 or later indicator variables a little more? I
have four non-numerical values for race. Thanks for the information on gender. I was using 1 for men and 2 for females. "Jerry W. Lewis" wrote: Where only two values are possible (as with gender) then you use a single variable with +1 for one gender and -1 for the other. Extending to more than two values is possible, but non-trivial. Alternately, if you have Excel 2003 or later, you can create an indicator variable (0 or 1) for each possible non-numeric value. This approach directly permits more than 2 possible values. Jerry "NG" wrote: I am using Microsoft Excel 2003. I have been running regressions on numerical data and am curious to know how to run one if part of my data is non-numerical such as gender or race. |
#5
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NG -
For four levels of a categorical variable, e.g., A or B or C or D, use three indicator variables. Select one level as the base case, e.g., A, and the value of each indicator variable (B, C, D) shows whether an observation is B or not B, C or not C, etc. For an observation with level A, the value of all three indicator variables is zero. The regression coefficients measure how different B,C,D are from the base case A, on the average. I use the same approach of gender, e.g., 0 for male and 1 for female, in which case the regression coefficent for the gender indicator shows how females differ from males, on the average. - Mike http://www.mikemiddleton.com "NG" wrote in message ... Can you explain the Excel 2003 or later indicator variables a little more? I have four non-numerical values for race. Thanks for the information on gender. I was using 1 for men and 2 for females. "Jerry W. Lewis" wrote: Where only two values are possible (as with gender) then you use a single variable with +1 for one gender and -1 for the other. Extending to more than two values is possible, but non-trivial. Alternately, if you have Excel 2003 or later, you can create an indicator variable (0 or 1) for each possible non-numeric value. This approach directly permits more than 2 possible values. Jerry "NG" wrote: I am using Microsoft Excel 2003. I have been running regressions on numerical data and am curious to know how to run one if part of my data is non-numerical such as gender or race. |
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