I agree that you need to do exploratory analysis, and then also I would suggest a stepwise model which would give you more information.
Sometimes you loose information by coding a continuous variable. Remember also that multiple regression assumes linear relationships., and no interaction between you independent variables. You can test those assumptions and probably should.
Pat Fox
------Original Message------
David H. said it as it should be.
------------------------------
Raid Amin
Professor
University of West Florida
------------------------------
Original Message:
Sent: 04-28-2015 20:45
From: David Greenberg
Subject: Multiple linear regression help
Turning your three-valued predictor into two dummy variables each coded 0 or 1 is the better approach because it avoids making the assumption of equal distance between the categories. David Greenberg,Sociology Department, New York University
------------------------------
David Greenberg
Professor
New York University
------------------------------
Original Message:
Sent: 04-27-2015 10:16
From: Brandy Sinco
Subject: Multiple linear regression help
Before running your regression model, write out your regression equation.
I.E., Y=B0 +B1*Housing etc.
Each Bi indicates the effect of a unit increase in Xi, with all other X's held constant.
Also, if you have 0,1,2 coding, I would set variables for 1 versus 0 and 2 versus 0. By using the 0,1,2 coding, your model includes the assumption that a unit increase is the same from 0 to 1 as from 1 to 2. I suggest testing that assumption.
Hope this helps you to get started.
------------------------------
Brandy Sinco
Research Associate
------------------------------