If one is doing a work where variables are categorical, like perception about their home environment, having decision making authority. here first one can't be coded in binary form like 0 or 1 but next one can be coded in such way. is it justified to understand the interrelationship between this two applying inferential statistics?
In inferential statistics, the assumption of linearity is required. When researcher use categorical variables on nominal level of measurement, and these variables are composed from 3 groups or more, then the researcher/statistician should do dichotomy coding.
Dear,
You have to looking for review articles to figure-out the methodology or previous studies that includes which variables they have been used, besides, the techniques they have been used, so you can flow them.
also, the research articles which closed to you will be useful, as justification for you.
There are many statistics that can be used to look at the relationship between one continuous and one categorical variable, depending upon what you are trying to do. If I understand your question correctly, a simple statistic for this case is an independent group t-test to see if the two decision making groups differ on their perceptions.
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