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Thread: creating a categorical variable with a continuous variable

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    creating a categorical variable with a continuous variable




    Hi,

    I have a year of birth variable that I'm regrouping into categories (for example 1970-1974 is coded as 1, 1975-1979 is coded as 2, etc). I then want to use this variable as an independent variable in a regression model, would it be better to use it as a continuous variable (since the order of the codes have a chronological meaning) or as a categorical variable (with dummy variables for each category)?

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    Re: creating a categorical variable with a continuous variable


    If you are determined to categorize years into blocks; I would make sure each block has the same number of years and I would treat the first group as the reference with it entered as a categorical variable. You can also create estimate statements to get a trend estimate across categories.
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