Contextual Variables
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A 'contextual' variable is an outcome variable that describes a property of a group that a unit belongs to rather than a property of the unit. For example, a geodemographic variable such as the average age in a suburb where a person lives is a contextual variable. Contextual variables are used to:
- Improve prediction in situations where there are few other independent variables available.
- As a proxy for sociological variables (i.e., the characteristics of a person's social group).