How to make dummy variables in regression Consider the example in computer lesson 2. Dependent variable: % correct spelling Explanatory variables: Children‟s chronological age, their reading age, their standardized reading score and their standardized spelling score Assume we have a variable with three categories which corresponds to their ethnicity: Ethnicity { 1=Black 2=Hispanic 3= White } Since it has three categories, we need to introduce two dummy variables in the regression model as follows: Z2=1 if the subject is Hispanic , Z2=0 otherwise Z1=Z2=0 if the subject is White Transform ► Recode into different variables Click here “old and new values” Z1=1 if Ethnicity=1 , Z1=0 otherwise In other words Z1=1 if the subject is Black , Z1=0 otherwise Z2=1 if Ethnicity=2 , Z2=0 otherwise Z1=Z2=0 if Ethnicity=3 Click here After this procedure you have made a new variable Z1 which has two values (0 & 1). Now, we do the same procedure to make Z2 Transform ► Recode into different variables How to save predicted values in a regression model in SPSS: This example is from Computer lesson 2. The data is available in on the course web. Dependent variable: % correct spelling Explanatory variables: Children‟s chronological age, their reading age, their standardized reading score and their standardized spelling score Click on Analyze ►Regression ► Linear ► Save Predicted values are saved as a new variable in your data set. Here you can save the prediction intervals (Lower & Upper bounds). Two new variables (Lower and Upper) are added to the data set. Choose the confidence level in the box (95% is the default) Prediction intervals for Mean. Lower and upper bounds for the prediction interval of the mean predicted response. For example the mean predicted of “ % correct spelling” , knowing the values of chronological age, reading age, standardized reading score and standardized spelling score. In other words, confidence interval for the mean “% correct spelling” of all children, given the values of explanatory variables. Reminder from the lecture: Individual. Lower and upper bounds for the prediction interval of the dependent variable for a single case. It is titled as „Prediction interval‟ in the graph below. Hint: If you need to predict the response variable (Y) for a certain individual with known x-variables, you can add a new case to your data set and predict the response variable and its confidence interval as it was explained above.