(Note the number of categories, remembering that dummy coding transforms a variable with “n” categories into “n-1” categories. Select the categorical variable that you want to dummy code.Let’s walk through the steps! Dummy Coding Step by Step This process is known as “dummy coding.” IBM SPSS makes dummy coding an unpretentious practice. An example would be employed and unemployed. These steps involve coding a categorical variable into multiple dichotomous variables, in which variables take the value of “1” or zero.įor clarity, a dichotomous variable is defined as a variable that splits or groups data into 2 distinct categories. Including these variables in an analytical model requires special steps to ensure the results can be interpreted properly. Statistical Analysis often include s variables in which the numbers represent qualitative categories (such as gender, ethnicity or political affiliation). If we consider a morning latte example, we might note the following: With some guidance, you can craft a data platform that is right for your organization’s needs and gets the most return from your data capital.
