Chapter 17. Multiple Regression with Nominal Variables

17.1 Introduction 482

17.2 Detail Example: Loan Amount versus Sales Revenues 483

17.3 Difference of Intercepts of Two Parallel Lines 485

17.3.1 Using JMP for Regression Analysis with a Nominal Variable 485

17.3.2 Interpretation of Parameter Estimates and Associated Hypothesis Tests 489

17.4 Regression Models Including Nominal Variables with Three or More Levels 490

17.5 Both Intercept and Slope of Two Lines Are Different 495

17.5.1 Detail Example: Growth versus General Equity Fund 495

17.5.2 Using JMP to Model Two Slopes and Two Intercepts 496

17.6 Summary 501

17.7 Problems 501

17.8 Case Study: Coffee Sales 505