Help with creating a dummy variable with a categorical variable.

#1
I am very new to stats and this is not my thing. I need help in a class with creating dummy variables for the variable "education level". Im not sure what values to insert for old and new values because I keep getting an error. Also how many dummy variables do I make? I attached the data set. My dependent variable is imprisonment rate.

Thank you.
 

Karabiner

TS Contributor
#2
If you have k educational levels you need to create
k-1 dummy variables. One educational level ("reference
level") won't have a dummy variable of its own. If
e.g. you chose "no education" as reference level, then
you create one dummy for each of the remaining
levels. How you do that depends on your software,
the logic is something like
if education_variable = 1, then edu_dummy_1 = 1
if education_variable is not = 1, then edu_dummy_1 = 0

if education_variable = 2, then edu_dummy_2 = 1
if education_variable is not = 1, then edu_dummy_2 = 0

HTH

P.