How should I treat binary variables

Frequently asked questions about PLS path modeling.
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DrLeo
PLS Junior User
Posts: 1
Joined: Fri May 15, 2020 9:32 am
Real name and title: Lars E Olsson, Professor

How should I treat binary variables

Post by DrLeo » Fri May 15, 2020 9:45 am

I'm sitting with a dataset with some binary variables that I wish to use as controls in my model where I test two main (continuous) latent outcome variables (in addition to some socio-demographics).

My questions are: (i) Is it ok to use binary variables as predictors in the PLS-model? and (ii) if it is ok, is there any rule of how many you can include to keep reliability of the model.

Any feedback is welcome,
Cheers/Lars

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