Question: Rather than create five dummy variables to represent a categorical

Rather than create five dummy variables to represent a categorical variable C with five labels, an analyst defined the variable X by converting the categories to the numbers 1, 2, 3, 4, and 5. Does the regression of Y on X produce the same results as a regression of Y on four dummy variables that represent four of the categories of C?

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  • CreatedJuly 14, 2015
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