Qualitative Response Regression Modeling

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Author(s): Aliyu Olayemi Abdullateef (University Utara, Malaysia)
Copyright: 2015
Pages: 12
Source title: Market Research Methodologies: Multi-Method and Qualitative Approaches
Source Author(s)/Editor(s): Amandeep Takhar-Lail (University of Bedfordshire, UK)and Ali Ghorbani (Payame Noor University, Iran)
DOI: 10.4018/978-1-4666-6371-8.ch011

Keywords: Business Science Reference / Library & Information Science / Marketing and Consumer Behavior / Research Methods

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Abstract

In most regression models, readers have implicitly assumed that the dependent variable (regressand) Y is quantitative. On the contrary, explanatory variables could take the form of qualitative (or dummy), quantitative, or a triangulation thereof. This chapter discusses the observed fundamental differences between quantitative and qualitative models through a clear definition of their individual objectives. This chapter also considers many models in which the regressand is a qualitative variable, popularly called categorical variables, indicator variables, dummy variables, or qualitative variables. This chapter shows why it is not compulsory to restrict our dependent variable to dichotomous (yes/no) categories by establishing inherent benefits in estimating and interpreting trichotomous or polychotomous multiple category response variable. Relevant examples for developing, analyzing, and interpreting a probability model for a binary response variable using three known approaches (i.e. linear probability model, logit, and probit models) is also discussed.

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