When a dummy variable is included in a multiple regression model,the interpretation of the estimated slope coefficient does not make any sense anymore.

Question

Quizplus · Accepted Answer

The interpretation of the estimated slope coefficient of a dummy variable in a multiple regression model still makes sense. It represents the difference in the mean value of the dependent variable between the two categories represented by the dummy variable, holding all other variables constant.

When a Dummy Variable Is Included in a Multiple Regression