In trying to construct a model to estimate grades on a statistics test, a professor wanted to include, among other factors, whether the person had taken the course previously.To do this, the professor included a dummy variable in her regression model that was equal to 1 if the person had previously taken the course, and 0 otherwise.The interpretation of the coefficient associated with this dummy variable would be the mean amount the repeat students tended to be above or below non-repeaters, with all other factors the same.

Question

Quizplus · Accepted Answer

This is correct interpretation of the coefficient associated with the dummy variable. This statement is true. The coefficient associated with the dummy variable for previous course-taking indicates the average difference between the mean test scores of those who had taken the course before and those who had not, holding all other factors constant.

In Trying to Construct a Model to Estimate Grades on a Statistics