Does anyone know if it's possible to perform a multiple linear regression in Excel when the dependant variable is categorical rather than numerical?
I have to try and find a formula to determine if a population of people belong in group A or B. I have quite a lot of sample data, about 390,000 rows in Excel. The independant variables are a mixture of categorical and numerical values, but at a push I could remove the categorical independant variables and just leave the numerical.
I am not sure a linear regression is possible though due to the categorical dependant variable. What would the equation look like and what would it be saying? Do I need to use another type of regression?
Also whenever I try to run the analysis in Excel I get "Input data is non-numerical" - however it isn't, I checked it all, even tried replacing it with randomly generated 1's and 0's and still get the same problem. I thought it might be something to do with trying to run a linear regression with a categorical dependant variable.....anyone got any advice?
Thanks in advance
Rob