Question: I have a question re: dummy variables and regression models in Excel. Specifically, I have a dependent variable called restaurant location revenues and need to

I have a question re: dummy variables and regression models in Excel.

Specifically, I have a dependent variable called "restaurant location revenues" and need to run a regression to determine the impact of nearby liquor stores on the each of a restaurant chain's location's revenues. I am given a column that, for each location, provides the following qualitative information.

"The restaurant location DOES NOT have a nearby liquor store"

"The restaurant location has a nearby liquor store that DOES NOT sell food"

"The restaurant location has a nearby liquor store which DOES sell food"

How would I correctly set up one (or more) dummy variables to appropriately capture the above items in a regression?

Should I create two columns, with the first assigning a "1" for any restaurant with a nearby liquor store and a second assigning a "1" for any restaurant with a nearby liquor store WHICH ALSO SELLS FOOD? Or is there another way I should be thinking about this?

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