Handling categorical variables in R

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SUMMARY

In R, nominal categorical variables must be converted into factors before being transformed into dummy variables, specifically k-1 dummy variables for k levels. The function lm() in R automatically handles this conversion, ensuring proper statistical modeling. Converting categorical variables directly to dummy variables without the factor step is possible but limits the ability to choose different contrasts. This discussion clarifies the importance of the factor step in the context of R's handling of categorical data.

PREREQUISITES
  • Understanding of nominal categorical variables in R
  • Familiarity with R's factor data type
  • Knowledge of dummy variable creation
  • Basic proficiency with the lm() function in R
NEXT STEPS
  • Explore R's model.matrix() function for creating dummy variables
  • Learn about contrasts in R and how they affect statistical modeling
  • Investigate the differences between categorical variable handling in R and Python
  • Review case studies on statistical modeling using categorical variables in R
USEFUL FOR

Data scientists, statisticians, and R users who are working with categorical variables and seeking to optimize their statistical models.

fog37
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TL;DR
Handling categorical variables in R
Hello R users,

My general understanding is that, in R, nominal categorical variables (with 2 or more levels) must be first converted into factors and THEN to dummy variables (k-1 dummy variables for k levels). Is that correct?

Once we accomplish categorical variable -> factor -> dummy variables, we can then use the dummy variable as an independent or dependent variable in a statistical model (P.S. : when using the function ##lm()## in R, the function ##lm()## automatically does the dummy variable conversion but I am not sure that being true for other models).

What if we converted the categorical variable to dummy variables without the intermediate factor step? Would that still work in R?

Python does not have factors so that intermediate "factor" step does not apply...

Thanks!
 
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Can you give a code example? I'm not sure what the factor step is but seeing what's actually called might help.
 
fog37 said:
TL;DR Summary: Handling categorical variables in R

What if we converted the categorical variable to dummy variables without the intermediate factor step? Would that still work in R?
I have never tried this, but from my experience I would think that yes you could do that. You would lose the ability to choose different contrasts, since that would be your dummy variables. But I don’t see why it wouldn’t work
 

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