8. A Graphical Introduction
While the illustrative example in Figure 5 was based on a continuous predictor (e.g., age), one can conceptualize the notion of varying relationships in the presence of categorical predictors as well. Figure 6 illustrates the interpretation of neighborhood heterogeneity with categorical predictors. We consider social class as two category individual variables, high social class and low social class, and these are shown on the horizontal axis (x) with the response being a continuous score of poor health (y-axis) in Figure 6.