Suppose we consider an ANOVA model having two qualitative variables, each with two categories : Hourly Wages are to be explained in terms of the qualitative variables Marital Status ( Married / Unmarried ) and Geographical Region ( North / Non-North ).
22.
Suppose we consider an ANOVA model having two qualitative variables, each with two categories : Hourly Wages are to be explained in terms of the qualitative variables Marital Status ( Married / Unmarried ) and Geographical Region ( North / Non-North ).
23.
To illustrate how qualitative and quantitative regressors are included to form ANCOVA models, suppose we consider the same example used in the ANOVA model with one qualitative variable : average annual salary of public school teachers in three geographical regions of Country A . If we include a quantitative variable, " State Government expenditure on public schools per pupil ", in this regression, we get the following model:
