A researcher gathered 155 observations on four variables: job satisfaction, occu

Question

A researcher gathered 155 observations on four variables: job satisfaction, occupation, industry, and marital status. She wants to develop a multiple regression model to predict job satisfaction by the other three variables. All three predictor variables are qualitative variables with the following categories.

Occupation: accounting, management, marketing, finance.

Industry: manufacturing, healthcare, transportation.

Marital status: married, single.

How many variables will be in the regression model? Delineate the number of predictors needed in each category and discuss the total number of predictors.

Number of variables =

Number of predictors =

Explanation / Answer

Number of variables = 4 [Job satisfaction, Occupation, Industry, Marital Status]

For occupation, number of predictors needed = Number of categories - 1 = 4 - 1 = 3

For Industry, number of predictors needed = Number of categories - 1 = 3 - 1 = 2

For Marital Status, number of predictors needed = Number of categories - 1 = 2 - 1 = 1

So,

Total number of predictors = 3 + 2 + 1 = 6

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