In a perfect regression analysis, we need interval or ratio scaled variables.

Well I don’t have these. My dependent variable has Likert Scaling (1-to-5, where 1 is poor and 5 is Excellent). My independent variables have nominal scale. Well, nominal scale can be converted into dummy variables (0,1) so it they can be treated as an interval-level scale.

What you say about my dependent variable?

My another concern was collinerarity effect of independent variables. I am expecting correlation between some independent variables. How do you treat them if one or two variables are correlated? Also is there any correlation benchmark for accepting variables, which seems to be correlated?

Thank you,

Shailendra

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