Lesson 24: ANOVA via Regression with Dummy Variables

April 29, 2026

Review:

  • Two-sample t-test
  • One-way ANOVA
  • Review and Final Exam next week
  • Course Evaluations

Presentation:

The One-way ANOVA we did on Monday can also be done with Linear Regression and Dummy Variables

  • Review Two-Sample T-Test in Sheets
  • Review ANOVA in Sheets
  • Demonstrate XLMiner Linear Regression using Simple Regression Datasets
  • Demonstrate Dummy Variables and compare to ANOVA
  • Caution regarding the Dummy Variable Trap
    • Not all groups can be made into a dummy variable
    • Leave one group out to avoid Perfect Multicollinearity (aka the Dummy Variable Trap)

Activity:

  • Using the same data from Monday (Exercise 1, 2, 3)
  • Create dummy variables
  • Run regression
  • Compare to One-way ANOVA

Regroup:

  • Now look at student exam scores by row (where students usually sit)
    • A = front row
    • B = second row
    • C = third row
    • D = back row
  • Do exam scores vary significantly by row?

Assignment:

  • Prepare for Final Exam – review all previous exams and practice exams

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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