Categorical Dependent Variable

A categorical dependent variable is a variable of interest (a researcher wants to predict), measured on a nominal scale, whose values identify class or group membership (e.g., Gender, with classes Male and Female; or Education, with classes No High School Degree, High School Degree, Some College, College Degree, Some Graduate School, Graduate Degree). A researcher may be interested in predicting the group membership of observations based on the values of some independent or predictor variables. For example, Credit Risk, with values Good and Bad, would be a categorical dependent variable that one might want to predict based on measured independent variables that are possibly related to credit risk.