How to build Linear regression Model using Categorical Independent Variables

[Nawal_Kashyap]

Hi All,

I want to build a linear regression model using categorical variables(independent) in Eviews.

I am struggling to understand how to use my all categorical variable in Eviews.

I am using the below code for the same:

dependent_varibale adults @expand(area, cars) age children.

But the problem is that by using @expand it is creating interaction of area and cars, which I don't want to use.

Request you to please help me on the same.

I would be very thankful to you

[startz]

@expand(cars) @expand(area,@droplast)

[Nawal_Kashyap]

Thank you very much for your help!!
It work now.

But I am unable to include intercept term in this model

[Nawal_Kashyap]

I am using below code:
njcar @expand(adults) @expand(area, @droplast) @expand(cars, @droplast) @expand(age, @droplast) @expand(children, @droplast)

[startz]

dummy variable trap.

[Nawal_Kashyap]

Okay I got your point.
Thank you very much!!