RESEARCH METHODOLOGY

STATISTICAL TECHNIQUES AND TOOLS

MULTIPLE REGRESSION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
When you have categorical predictors, the intercept is the
A
average difference between all groups
B
difference between the group of interest and the reference group
C
mean of the reference group
D
value of the basic mean model
Explanation: 

Detailed explanation-1: -In conclusion, when you fit an additive model (no interaction term), the parameters are the difference of the mean per category (of only one factor) and the intercept is the estimated value of the response variable for the first modalities of each factor under the assumption of additivity.

Detailed explanation-2: -In regression analyses, categorical predictors are represented using 0 and 1 for dichotomous variables or using indicator (or dummy) variables for ordinal or categorical variables.

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