Distinguish among categorical, ordinal, and continuous predictors and their interactions, and how these relate to their usage in an extended linear model.
Free CAS MAS-I (Modern Actuarial Statistics I) lesson in Extended Linear Models. 16 min read, ~2,336 words.
Continuous predictors enter as one column with one slope; the slope is the change in per unit increase in, assumed linear unless transformed. Categorical (nominal) predictors with levels enter as dummy columns plus a baseline; each coefficient is the contrast versus the reference level. Ordinal predictors carry order but not...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- C5
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