pe aera 7 Interactions Between Categorical ‘and Continuous Variables “Tus far we have focused on the trestent of interactions between com Tinuous pete variables We now consider pobiems in which eter {et preitorailer bavng wo more eves ineraet with continous Ire vribls, We aso dar techniques or post oe bing Tia in the imerpretation ofsigicant infractions involving tego {nd continaoas variables. Coding Categorical Variables 3 vsales have been pro- ‘A turer of methods for coding eatgorical variables have posed (ase 2, Cohen & Cohen, 1985; Daringion, 1990; Pedbzst, Sea). foo meskes ae conde her: (a) dummy variable eding and (©) unweighted eet coding. Dommy Varlable Coding ize procedure inthe ‘Dumyvrblecodig the mot equenty iid pve ‘cae epselng cucgoeal vals in regreoneaptns. Tere (cor ecommendatone for coninous vals, be dummy cron aving he cep ‘Sling procedure dvs not comer the comp = sane ic) Nonthclesy, ar wil be sen blow, te eu oft posite we cau terete. us Cvegoriesl and Comins Varin i ‘Toillstate the we of dummy coding, imagine a researcher issuing the staring slain of bachelor degre rites in thee college: Libel ‘Ans (LA), Engineering (), abd Business (BUS). College isthe catego ‘eal variable inthis example- One ofthe colleges, LA) i deigted ‘the comparison group this designation may be abivary, based on the fry, or because of special ltrest comparing the oer two colleges ‘with his baseline. In general, G ~ gummy variables wl be needed, ‘where G isthe munberof groupe (eves ofthe extegorial variable. With thre leves of college, 3~ 1 = 2durmy variables wil be need. Tee sl sce of dummy variable codes for comparing thea three callgse be presen ia Table 7.1 ‘Taree Dummy Variable Coding Systems for College Datn ‘Throughout this section we will we the fist et of dummy variable des depicted in Table 7a. nts coding system, the Fist dummy var lable (D,) compares E wih the LA comparison group which i signed ‘value of 0. The second dummy variable (D,) compares BUS with the [LA comparison group. ln dummy coding, (a the compusson group is ‘signed a valu of Oi all dummy vais, () the prop being com ‘wasted tothe comparison group i signed a valve of | for tat duamy ‘ariableony, an) groups nt involved in the ents are also assigned 1alue of O for tat dum variable. Note hat dummy codes ae paral ‘eects tat are conitoned on all G ~ 1 dummy variable Being presen inthe egesion equation." ‘Coating with our example, suppose the researcher bat sampled 2 small number (W = 50) of university graduates and has recorded thst College, grade oin average, and saring salary. College and GPA ate the predicior variables snd sarting salary isthe outcome variable of i terest. These dat are presented in Tale 7-2. Asin Chaper 5, we will ‘conder the interpretation ofa eis of erosion uations of oceuing tenpeny.ee ee eee et emer et tee ti ti i tert ‘tanle72 ‘puis Dae; Staing Sti in Thee Cogs Sabo. Calle OFA Suey Saas nneleea seme om german Categorical Variable Only Sab Nar College GPA Say ® mae mos, Conde the simple retesion equation consining only the dummy viable: P= dD, + yD, + bo aay Cgc and Contos Varies Ww ‘This equation compares the mean stating salaries (19 of graduates of he thre colleges, Let us subtiue the dummy codes for each alee fom ‘Table 7. a into this equation, LA: Po B,(0) + 4(0) + by = by P= BI) + (0) + y= hy BUS: P= by(0) + By(1) + By = bs + by Frm hese mbtons, we hab eps the men (pete) vate of forthe comparson go, bere he LA grad. ‘pre ean luca Pere pds, any yet the mean ye of F forthe BUS pies Tate 7240) prose tat fhe sul othe cole ay tm The exes fr ths b coon ere 21,00 for by. 8398.90 fo ad 83,0010 {orb Anan be sen Tale 72, by = mean fr LA pat, + b= men for Eanes (97,99), and b= ean BUS ants (24,0010. Ts dat ae dpe in igre 7 The ji tet of ab Go Chater compres the es sing sais of the tessa sad eget 0 4 envy ANOVA The SSpaun cate sm of eas) om he ereon mls in Taba" Sa xo eaea fo Sena nh oe-ny ANOVA ‘he Fae om he wo sgn nen el, The ele the in ex inte egesn sly sw sie dilemma the gp. The tet of compra he ean fo be Eand CA ape the en of by compare ems forthe BUS and LA pope Boh ‘ont apie et ao ne Ip 13) Categorical and Continuous Variables We now add an effect of GPA on staring salary to the equation, sotig in| P= dD, + BD, + 8, GPA + by (ray ‘As wl in our tetment of cominuous vale, we wil center GPA throughout this secon (GPA = Original GPA ~ Mean GPA for entire sample120 MULTIPLE REGRESSION ‘Taher [Aasnes of Pogson of Regrson Equations ©) okadaic Trnpekb ek F299) + PomDy + 21.00 : ener Rabe = Hp < Totes 1) = 189.9 © O01 Se Siena Se Sta ” Pe bor, + Kora hy P= Gsmnibp'+ ay) + 9a.0RM + 20578 Jalna by R= 800, FO, 4) = hep < 01 Tato Hcy = 001, Fay = S82sp 0 Sop = MATEY. Sq" 500549 Cm Yee ti cana i enn [Oy yb + ora 4 (Dy OPA)» BD. OPA + Po Tosi) + 261)0, + GBNGRA I-CD) * eo, «ora aoe donate =O 8a) = A pc Saas inna sa 28 ‘Once agin we subsite the dummy codes for each college ito the uation: LA: P= GPA + by BE Ped, +R OPA Ay BUS: P= by +b 0PA + by [As canbe seen, equation 72 impli that each calle i eptesented by 8 separate repression line, with each line having an ideatcl slope, by “This means th tee repeasion ins wl be pall o one athe, a ‘is ustated in Figure 7.18. b represents the peice salary value for afr and Continous Varies nt “71073, comined Toot tec vier oay Pohgehe rk Pos 8) -am265) + 439932 ear fy be PS 080 Fay Hsp Tevet: = Hap ON Tetothy a = “sip By" Mosse Tuas © Tet et vate loti le Bog shee hare Po 3om iE s Connie) « amerny + 4am7 Ivette by be B= 090. Foes) bie 04 Toots) Rie 0017 Pad Shap 0h Sq = OATES SS, = S08 Po bbs sGPa ss GPA) + bys GPA) +b, PS Gahan © CE, + Sonar #04039, GPA) + 8.085 OPA) + 262003 Join ea ods m= Feed) = Tstap ot oe tts: Re = OF, 4) =38 pean, Toots ash 19 p< Teorsy te) = subip <0 Tesorby td) = Fahy <0 Syn i ea Se 2.508 ‘LA graduates having the GPA variable equal 0, Because ws have cen- {ered GPA, this eomesponts to the mean GPA ofthe ene sample® Ia ‘Table 73a) noe tat the value of by ($20,978) has change om hat in oar frst equation ($21,00). by now represents the pelted sting ly of LA graduates a the mean valve Of GPA forte ens sng (2.78) in contrast ots eater interpretation asthe wean OPA forte LA, radu represents he ditance between the LA ad E regrestoa lines, and represents the distance betwee the BUS and LA reese lies. by dy represent he diferece between mean sang sles for E and LA graduates ond BUS and LA pradunts, expctvely bt now ante for (conitioned on) GPA. The sifeences are now atrbuabe to the difereaces between the cllges above and beyond independent of) di ferences in GPA between the colleges. These changes inthe meaning of