# One-hot encoding Turns a single-select **nominal** column with *k* categories into **0/1 indicator columns** (one per category, named *column = category*). This lets a categorical variable be used as a **regression predictor** (regression accepts only numeric/ordinal inputs — see {doc}`../analyses/regression`). - With **Drop reference category** on (default), one category is omitted (*k* − 1 columns) and becomes the baseline — the usual setup for regression. - Turn it off to keep all *k* columns (useful for plain description). A row with a missing value gets 0 in every indicator. The original column is left untouched and the indicators are inserted right after it.