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. 17 min read, ~2,514 words.

Continuous predictors enter as one column with one slope; the slope is the change in per unit increase in, assumed linear on the link scale unless transformed. Categorical (nominal) predictors with levels enter as dummy columns plus a baseline absorbed into the intercept; each coefficient is the contrast versus the...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• C5

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