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I have used simple linear regression, and I'm now checking that the model meets the assumption of linearity. The model used a continuous response variable and categorical explanatory variables. How can I asses linearity when using categorical explanatory variables?

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If you have a single categorical variable you are effectively doing a one-way anova and the concept of a linear relationship between your regressors and your response isn't well defined since you don't have any way to measure the distance between your categories or for that matter even ordination. –  Jonathan Lisic Jul 31 '12 at 19:42
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