![]() ![]() Lastly, click on the box for Labels and press OK. Now, highlight BOTH your dummy-coded variables and the other predictor variable, including their labels. Now, click the button below to identify your predictor data (your X-Range). Highlight your outcome data, including the label. Then, click on the button below to identify your outcome data (your Y-Range). Once you have the correct dummy codes, we are going to perform a regression as usual. If you do it correctly, your dataset should look like the picture below: When conducting these analyses, you’ll have Group 1 as the “baseline group” that Groups 2 and 3 are compared against. In the second new column, you’ll want each person in Group 3 to have a 1 for their value, and each other person to have a 0. In the first new column, you’ll want each person in Group 2 to have a 1 for their value, and each other person to have a 0. To do so in Excel, we should first right-click on our outcome column, and then click on Insert. In this case, we will make a total of two new variables (3 groups – 1 = 2). To perform a dummy-coded regression, we first need to create a new variable for the number of groups we have minus one. The instructions below may be a little confusing if your data looks a little different. If your dataset looks differently, you should try to reformat it to resemble the picture above. ![]() The data should look something like this: In the dataset, we are investigating the relationships of three training groups and conscientiousness with sales. If you don’t have a dataset, you can download the example dataset here. To answer these questions, we can use Excel to calculate a regression equation. Of course, there is more nuance to dummy-coded regression, but we will keep it simple. What is the relationship of a widget’s manufacturing process on its assessed quality while accounting for the machine operator’s tenure?.What is the relationship of people’s county of residence on their life satisfaction while accounting for their income?.What is the relationship of people’s training groups on their job performance while accounting for their job satisfaction?.This is where dummy coding can come into play, which can be used to answer the following questions and similar others: Believe it or not, a linear regression can also identify the differences between groups pretty well – as long as we know how to code our predictors correctly. As always, if you have any questions, please email me at typical type of regression is a linear regression, which identifies a linear relationship between predictor(s) and an outcome. This page is a brief lesson on how to perform a dummy-coded regression in Excel. To do this, dummy-coded regression can help out. Typically, I tell students that the two primary categories of “basic” statistics is whether they (a) determine the relationship between things or (b) the differences between groups. ![]()
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