![]() The observations from the South region would be given values of zero in all three categories. Similarly, East and West observations would receive a 1 in their respective dummy category and zeros elsewhere. Then, all observations from the North would get a value of 1 in the North dummy, and zeros in all others. Then you would create dummies for the other three regions. For example, if you are coding a dummy for four regions (North, South, East and West), you could designate the South as the referent group. \): Dummy Intercept Variablesįor a case with multiple nominal categories (e.g., region) the procedure is as follows: (a) determine which category will be assigned as the referent group (b) create a dummy variable for each of the other categories.
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