Example of Make Indicator Variables

A materials engineer wants to understand the relationship between the strength of plastic cases, the temperature at which the strength measurements were made, and the supplier of the plastic (Manufacturer A or B). Because Manufacturer is a categorical variable, the engineer must create indicator variables to use in the regression analysis.

  1. Open the sample data, PlasticCases.MTW.
  2. Open the Make Indicator Variables dialog box.
    • Mac: Data > Make Indicator Variables
    • PC: DATA > Indicator Variables
  3. In Make indicator variables for values in, enter Manufacturer.
  4. Click OK.

Results

The indicator variables for Manufacturer are in columns C4–C5 of the worksheet.

C1 C2 C3 C4 C5
Temp Manufacturer Strength Manufacturer_A Manufacturer_B
185 A 5150 1 0
183 A 5125 1 0
187 A 5123 1 0
... ... ... ... ...
196 B 5105 0 1
197 B 5176 0 1
195 B 5160 0 1
... ... ... ... ...
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