Hello,

I have generated a dummy variable "cellar" with has 3 answers: 1 large basement, 2 small basement or 3 crawl space, using:

Code:
tab cellar, gen(c)
To use regression with the dependent variable logprice (=houseprice), should I use:

Code:
reg logprice i.cellar
or

Code:
reg logprice c2 c3
and c1 should be left out and is the base group.

Which one is correct?

Thanks in advance.