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coding for categorical variables with unequal observations

I think you need to do some background reading.  R does this automatically 
for you, and offers many options for how it is done.  (That you have asked 
suggests you have missed that.)

The account by Bill Venables in chapter 6 of MASS (the book, see the R 
FAQ) is regarded as the most comprehensive available.
On Thu, 3 Apr 2008, Tanya Yatsunenko wrote: