Dummy Variables in Multiple Regression

In this video I explain what dummy variables are and how you can easily create them online.

Categorical variables with two characteristics can be used as independent variables (predictors) in a Regression. Variables with two characteristics are also called dichotomous, e.g. gender with the characteristics male and female

Normally, only independent variables with two characteristics can be considered in a regression. If the variables have more characteristics, dummy variables must be formed. From a variable with n characteristics, n-1 new dummy variables with 2 characteristics each are created.

You will find more information here:

and the online Regression Calculator:

Regression Analysis: An introduction to Linear and Logistic Regression
Simple and Multiple Linear Regression
Assumptions of Linear Regression
Logistic Regression: An Introduction
Dummy Variables in Multiple Regression
Regression with categorical independent variables
Multicollinearity
Causality, Correlation and Regression

[dukeislam]

Thank you. You provided the best explanation of "Dummy Variable".

[Nick-pxtq]

Hah! I loved the n-1 reveal on car type dummy variables. As you were describing the initial 3 I was yelling at the screen "but these are mutually dependent - they break the assumptions!". I laughed at myself when you got to the n-1 reveal 🤣

[mehdi.sajadi]

thanks a lot, it was useful to deal with non-numerical variables

[muzahirahmednur]

Thanks so much! May Allah Almighty reward you with the best

[Rodrigo-lqiy]

Thank you very much! Really helpful content!

[asamijaz]

apart from goodness of presentation i really loved the accent aswell

[simjxin]

Both Chicago and NY have two coefficients, but are under one variable "Place". So what does the coefficients mean when inserted into the multiple regression equation?
I'm not sure if my question makes sense TT

[JustineBoso]

Hi ! Thank you for the video it was very interesting and helpfull. I have a question, how many characteristics we can use for one variable ? Is there a limit ? Thank you !

[_Anonymous_]

Thanks. How about if we have 2 categorical variables with 2 levels, and are also interested in an interaction term? (i.e. like a 2x2 ANOVA). What is the process for setting the dummy variables for the interaction term also?

[SourovDattacse]

You have a friendly speaking style. Slow and Cute. Very helpful tutorial.

[manifestationmaster]

If True == 1 in coding, shouldn't yes be 1 not 0?

[ryanbrink]

if there are three places of residence why do we only use two of them? Currently working on a MLR project and am struggling to understand which one to not include as I am using 4 indicator variables.

[AlvinYakitori]

How do we interpret coefficients of dummy variables with more than 2 values?

[theforester_]

so just a quick question: if my dependent variable (y) is categorical i must perform logistic regression, however when my independent variable (x) is categorical i must create dummy variables.
is it correct ? sometimes i get confused by this. thanks! greetings from brazil

[JOWIGAMINGGTA]

Can you perform a bivariate regression with only one dummy variable? How will this look like?

[xxMeghaxx]

How to choose dependent and independent variable?