If you wish to develop a multiple regression model that includes a qualitative variable; education status, in which the following categories exist: no degree, high school diploma, junior college degree, bachelor degree, and graduate degree, you need to code the categories as 1, 2, 3, 4, and 5.

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There are different ways to code categorical variables in a regression model, and coding them as 1, 2, 3, 4, and 5 may not be the best approach, as it implies equal intervals between the categories, which may not be true. Other coding schemes, such as dummy coding or effect coding, may be more appropriate.

If You Wish to Develop a Multiple Regression Model That