Create section in linear regression chapter consisting of:
We will use the ford focus data again to show categorical variables. We will use the mileage against the response variable and as a categorical we will use the transmission type. So we make the design matrix with two dummy variables and plot all three lines (they will have the same slopes) in the scatterplot where we want different colours/symbols for the data-points in the different categories.
Create section in linear regression chapter consisting of:
We will use the ford focus data again to show categorical variables. We will use the mileage against the response variable and as a categorical we will use the transmission type. So we make the design matrix with two dummy variables and plot all three lines (they will have the same slopes) in the scatterplot where we want different colours/symbols for the data-points in the different categories.