One-way analysis of variance using the regression model
An analysis of variance model with just one categorical variable is referred to as a one-way analysis of variance model. Although one-way analysis of variance models are limited to only one categorical variable, this variable can comprise any number of categories. In other words, the categorical variable does not have to be a simple dichotomy. In fact, many categorical variables are not dichotomies. For example, marital status is often treated as a dichotomous variable: one is either married or single. However, the category of single includes individuals who are widowed and divorced as well as those who have never been married. Similarly, minority group status is sometimes treated as a dichotomous variable: one is either a minority or not. However, the category of minority group member includes individuals from two large but very different minority groups: African-Americans and Hispanic-Americans. If we are interested in comparing the effects of different types of minority group status on income, we should probably differentiate between African-Americans and Hispanic-Americans.
KeywordsRegression Model Categorical Variable Variance Model Minority Group Dichotomous Variable
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